Download - Annual report 2019 - National Plastic Report 2018-2019.pdf · Shri Arihant Parakh Wholetime Director Shri Sudhir K Patel Shri Ajit Kumar Chordia Smt Manju Parakh Registered Office

Thirtieth Annual Report

2018-2019

NATIONAL PLASTIC TECHNOLOGIES LTD

Board of Directors : Shri Sudershan Parakh

Managing Director

Shri Alok Parakh

Joint Managing Director

Shri Arihant Parakh

Wholetime Director

Shri Sudhir K Patel

Shri Ajit Kumar Chordia

Smt Manju Parakh

Registered Office : Thiru Complex, II Floor,

69, (Old No.44), Pantheon Road,

Egmore, Chennai 600 008.

Tel : 4340 4340 , 2855 3456.

Email: [email protected]

www.nationalplasticsgroup.com

Registrars & Share : Cameo Corporate Services Ltd.,

Transfer Agents Subramanian Building,

No.1 , Club House Road,

Chennai 600 002.

Tel : 2846 0390 Fax : 2846 0129.

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NOTICE TO THE SHAREHOLDERS

Notice is hereby given that the Thirtieth Annual General Meeting of the Members of the Company will be held on Wednesday, the 11th September, 2019 at The Hall of Ragaas, 47, First Avenue, Sastri Nagar, Adyar, Chennai-600 020 to transact the following business:

ORDINARY BUSINESS:

1) To receive, consider and adopt the Audited Profit and Loss Account for the year ended 31st March, 2019, Balance Sheet as at that date and the Directors' Report.

2) To appoint a Director in the place of Smt Manju Parakh (DIN: 01417349) who retires by rotation and being eligible, offers herself for reappointment.

SPECIAL BUSINESS

3) To consider and if thought fit, to pass with or without modification, the following resolution as Special Resolution:

Reappointment of Shri Sudhir K Patel as Independent Director:

“RESOLVED THAT pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Companies Act, 2013 (“Act”) and the Rules framed thereunder as read with Schedule IV to the Act, and SEBI Regulations, as amended from time to time, Shri Sudhir K Patel (DIN:00943032), a non-executive Director of the Company,

who has submitted a declaration that he meets the criteria for independence as provided in Section 149(6) of the Act and who is eligible for appointment and not liable to retire by rotation, be and is hereby reappointed as an Independent Director of the Company, for a period of 5 years with effect from 24th September, 2019 upto 23rd September, 2024.

RESOLVED FURTHER THAT the Board of Directors be and is hereby authorised to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”


Reappointment of Shri Ajit Kumar Chordia as Independent Director:

“RESOLVED THAT pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Companies Act, 2013 (“Act”) and the Rules framed thereunder as read with Schedule IV to the Act, as amended from time to time, Shri Ajit Kumar Chordia (DIN:00049366), a non-executive Director of the Company, who was appointed as Independent Director and who holds office as an Independent Director upto 23rd September, 2019 and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature for the office of Director and who has submitted a declaration that he meets the criteria for independence as provided in Section 149(6) of the Act and who is eligible for appointment , be and is hereby reappointed as an Independent Director of the Company, 24th September, 2019 upto 23rd September, 2024.

who was appointed as Independent Director and who holds office as an Independent Director upto 23rd September, 2019 and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature for the office of Director and

and SEBI Regulations,

and not liable to retire by rotation for a period of 5 years with effect from

RESOLVED FURTHER THAT the Board of Directors be and is hereby authorised to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

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Reappointment of Shri Alok Parakh, as Joint Managing Director for a period of 3 years:

“RESOLVED THAT in accordance with the provisions of Sections 196, 197 and 203 read with Schedule V and all other applicable provisions of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), approval of the Company be and is hereby accorded to the reappointment of Shri Alok Parakh (DIN: 01417398) as Joint Managing Director of the Company, for a period of 3 (three) years with effect from October 01, 2019, on the terms and conditions including remuneration as set out in the Statement annexed to the Notice convening this Meeting, with liberty to the Board of Directors (hereinafter referred to as “the Board” which term shall be deemed to include the Nomination and/or Remuneration Committee of the Board) to alter and vary the terms and conditions of the said reappointment and / or remuneration as it may deem fit and as may be acceptable to Shri Alok Parakh, subject to the same not exceeding the limits specified under Schedule V to the Companies Act, 2013 or any statutory modification(s) or re-enactment thereof.

RESOLVED FURTHER THAT the Board be and is hereby authorised to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

NOTES

1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member of the Company. A person can act as proxy on behalf of members not exceeding fifty (50) and holding in the aggregate not more than ten percent of the total share capital of the Company. A member holding more than ten per cent of the total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder.

2. Corporate Members intending to send their authorized representatives to attend the meeting are requested to send a certified copy of the Board Resolution to the Company or upload it on e-voting portal, authorizing their representative to attend and vote or their behalf at the meeting.

3. The instrument appointing the proxy, duly completed, must be deposited at the Registered Office of the Company not less than 48 hours before the commencement of the meeting. A proxy form for the AGM is enclosed.

4. During the period beginning 24 hours before the time fixed for the commencement of the AGM and until the conclusion of the meeting, a member would be entitled to inspect the proxies lodged during the business hours of the Company, provided that not less than three days of notice in writing is given to the Company.

5. Members/Proxies/authorized representatives should bring the duly filled attendance slip sent herewith to attend the Meeting.

6. The Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170 of the Companies Act, 2013 ('the ACT'), and the Register of Contracts or Arrangements in which the Directors are interested, maintained under Section 189 of the Act, will be available for inspection by the members at the AGM.

7. Members seeking any information with respect to financials or any other information are requested to write to the Company at the earliest so as to enable the Company to provide appropriate reply.

8. The Register of Members and Share Transfer Books will remain closed from 7th September, 2019 to 11th September, 2019 (both days inclusive).

and SEBI Regulations

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9. Members wishing to claim dividends that remain unclaimed are requested to correspond with the Registrar and Share Transfer Agents as mentioned above, or the Company Secretary at the Company's registered office. Members are requested to note that dividends that are not claimed within seven years from the date of transfer to the Company's Unpaid Dividend Account will, as per Section 124 of the Act, be transferred to the Investor Education and Protection Fund (IEPF), shares on which dividend is unclaimed for seven consecutive years will be transferred to the IEPF as per Section 124 of the Act, and the applicable rules.

10. Members holding shares in single name and in physical form are advised to make nomination in respect of their shareholding in the Company by submitting Form SH-14.

11. Members holding shares in physical form are requested to intimate the Company regarding any change in their address/bank mandates to enable the Company to address future communications to their correct addresses. Members holding shares in electronic/dematerialised form are requested to inform the Depository Participant (DP) with whom they hold their demat account, about the changes in their address/bank details for necessary updates.

12. The SEBI has mandated the submission of the Permanent Account Number (PAN) by every participant in the securities market. Members holding shares in electronic form are, therefore, requested to submit their PAN to their depository participant(s). Members holding shares in physical form are required to submit their PAN details to the Registrar and Share Transfer Agents.

13. Members may also note that the Notice of the 30th Annual General Meeting and the Annual Report for 2018-19 are available on the Company's website.

14. The Companies Act, 2013 is referred to as the “Act” in this notice. DIN refers to Director Identification Number. SEBI LODR or SEBI Regulations wherever appears refers to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

15. Pursuant to Section 108 of the Act, members may exercise their right to vote by electronic means for the resolutions to be passed at the meeting. A note on the e-voting process is provided hereunder:

All documents referred to in the accompanying Notice and the Explanatory Statement shall be open for inspection at the Registered Office of the Company during normal business hours on all working days except Saturdays, up to and including the date of the Annual General Meeting of the Company.

By order of the board,

For National Plastic Technologies LimitedDate: 19.07.2019 Place: Chennai

S. Abishek Company Secretary

Voting through Electronic means I. In compliance with provisions of Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules, 2014 as amended by the Companies (Management and Administration) Amendment Rules, 2015 and regulation 44 of the SEBI (LODR) Regulations, the Company is pleased to provide members facility to exercise their right to vote on resolutions proposed to be considered at the Annual General Meeting (AGM) by electronic means and the business may be transacted through e-Voting Services. The facility of casting the votes by the members using an electronic voting system from a place other than venue of the AGM (“remote e-voting”) will be provided by National Securities Depository Limited (NSDL).

II. The facility for voting through ballot paper shall be made available at the AGM and the members attending the meeting who have not cast their vote by remote e-voting shall be able to exercise their right at the meeting through ballot paper.

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III. The members who have cast their vote by remote e-voting prior to the AGM may also attend the AGM but shall not be entitled to cast their vote again.

IV. The remote e-voting period commences on 8th September, 2019 (9:00 am) and ends on 10th September, 2019 (5:00 pm). During this period, members of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date of 4th September, 2019, may cast their vote by remote e-voting. The remote e-voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by the member, the member shall not be allowed to change it subsequently.

V. The cut-off date for e-voting is 4th September, 2019. The voting rights of members shall be in proportion to their shares of the paid up equity share capital of the Company as on the cut-off date of 4th September, 2019.

VI. Any person, who acquires shares of the Company and becomes member of the Company after dispatch of the notice and holding shares as of the cut-off date i.e. 4th September, 2019, may obtain the login ID and password by sending a request at [email protected] or Company/RTA. However, if you are already registered with NSDL for remote e-voting then you can use your existing user ID and password for casting your vote. If you have forgotten your password, you can reset your password by using “Forgot User Details/Password” option available on www.evoting.nsdl.com or contact NSDL at the following toll free no.: 1800-222-990. A person, whose name is recorded in the register of members or in the register of beneficial owners maintained by the depositories as on the cut-off date only shall be entitled to avail the facility of remote e-voting as well as voting at the AGM through ballot paper.

VII. Mr. Yogesh K Chandak, Partner, B & Y Associates, Cost Accountants has been appointed as the Scrutinizer to scrutinize the voting and remote e-voting process in a fair and transparent manner.

VIII. The Chairman shall, at the AGM at the end of discussion on the resolutions on which voting is to be held, allow voting with the assistance of Scrutinizer, by use of “remote e-voting” or “Ballot Paper” or “Poling Paper” for all those members who are present at the AGM but have not cast their votes by availing the remote e-voting facility.

IX. The Scrutinizer shall after the conclusion of voting at the general meeting, will first count the votes cast at the meeting and thereafter unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the employment of the Company and will make within three days of the conclusion of the AGM, a consolidated Scrutinizer's Report of the total votes cast in favour or against, if any, to the Chairman or a person authorized by him in writing, who will countersign the same and declare the result of the voting forthwith.

X. The results declared alongwith the report of the Scrutinizer shall be placed on the website of the Company and on the website of NSDL immediately after the declaration of result by the Chairman or a person authorized by him in writing. The results shall also be immediately forwarded to the BSE Limited, Mumbai.

XI. The process and manner for remote e-voting are as under:

Evoting process:The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:

Step 1 : Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/Step 2 : Cast your vote electronically on NSDL e-Voting system.

Details on Step 1 is mentioned below:

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How to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.

2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under 'Shareholders' section.

3. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown on the screen.Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

4. Your User ID details are given below :

5. Your password details are given below: a) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.

b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the 'initial password' which was communicated to you. Once you retrieve your 'initial password', you need to enter the 'initial password' and the system will force you to change your password.

c) How to retrieve your 'initial password'?(I) If your email ID is registered in your demat account or with the Company, your 'initial password' is communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file contains your 'User ID' and your 'initial password'. (ii) If your email ID is not registered, your 'initial password' is communicated to you on your postal address.

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Manner of holding shares i.e. Demat

(NSDL or CDSL) or Physical

a) For Members who hold shares in

demat account with NSDL

b) For Members who hold shares in

demat account with CDSL

c) For Members holding shares in

Physical Form

Your User ID is:

8 Character DP ID followed by 8 Digit Client ID

For example if your DP ID is IN300*** and

is 12****** then your user ID is IN300***12******.

16 Digit Beneficiary ID

For example if your Beneficiary ID is 12**************

then your user ID is 12**************

EVEN Number followed by Folio Number

registered with the Company

For example if folio number is 001*** and EVEN is

101456 then user ID is 101456001***

Client ID


6. If you are unable to retrieve or have not received the “ Initial password” or have forgotten your password:a) Click on “Forgot User Details/Password?” (If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com.b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.c) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] mentioning your demat account number/folio number, your PAN,your name and your registered address.d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.

7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.

8. Now, you will have to click on “Login” button.

9. After you click on the “Login” button, Home page of e-Voting will open.

Details on Step 2 is given below:How to cast your vote electronically on NSDL e-Voting system?1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click on Active Voting Cycles.2. After click on Active Voting Cycles, you will be able to see all the Companies “EVEN” in which you are holding shares and whose voting cycle is in active status.3. Select “EVEN” of Company for which you wish to cast your vote.4. Now you are ready for e-Voting as the Voting page opens.5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.6. Upon confirmation, the message “Vote cast successfully” will be displayed. 7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.8. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to [email protected] with a copy marked to [email protected]. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com to reset the password. 3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800-222-990 or send a request [email protected]

Pursuant to SEBI LODR, a brief profile of Directors, who are proposed to be re-appointed / appointed in this AGM, nature of their expertise in specific functional areas, their other directorships and committee memberships, their shareholding and relationship with other Directors of the Company are given below:

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1. Smt Manju Parakh, Director:Smt Manju Parakh comes from a family which has been in finance and hire purchase business for over 5 decades. She is also a Director in National Polyplast (India) Pvt Ltd. She is related to the Directors - Shri Sudershan Parakh, Shri Alok Parakh & Shri Arihant Parakh.Other Directorship & Committee Membership:

She has attended 6 Board Meetings held during the year. She is a member of Audit Committee and Nomination and Remuneration Committee. The Company has obtained her consent to be appointed as a Director. She is not disqualified from being appointed as a Director. Shri Sudershan Parakh, Shri Alok Parakh & Shri Arihant Parakh may also be deemed to be interested in the resolutions pertaining to appointment of and/or remuneration to each other, as they are related to each other. Save and except the above, none of the Directors of the Company are, in any way, concerned or interested in the resolution.

Explanatory Statement pursuant to Section 102 of the Companies Act, 2013The following explanatory statement sets out all material facts relating to the special businesses mentioned in the Notice of AGM and shall be taken as forming part of the Notice.

Item No.3 & 4The Act, inter alia, prescribes certain specific procedures for selection, appointment and remuneration of Independent Directors (IDs), besides that their term can be for a period upto five consecutive years and are not liable to retire by rotation during this period. Also, the Independent Directors can be appointed for two consecutive terms with a maximum period of 5 years for each term. Accordingly, the following Independent Directors appointed earlier under the Act, are proposed to be reappointed as non-executive Independent Directors for a further period of five consecutive years, in compliance with the provisions of the Act, 2013.

*He was a Director in another listed company namely Arihant’s Securities Ltd as on 31.03.2019.

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S.No Name of the

Director

Brief Profile & Expertise

Shri Sudhir K Patel is a well knowntax consultant in Chennai and hasexpertise in Financial Management. He has vast experience in taxation and has been an Independent Director of the Company for a considerable time.

1

2

Other directorships& Committee Memberships

No. of Shares held in the Company

Shri Sudhir K Patel

Shri Ajit Kumar Chordia *

No. of other Directorships : 2 No. of other Committee Memberships : Nil

No. of other Directorships : 9No. of other Committee Memberships : 6

Nil

NilShri Ajit Kumar Chordia is a Graduatein Engineering and is Director of Khivraj Tech Park Pvt Ltd and other Khivraj Group of Companies. In addition, he is associated with several organizations including CII, CREDAI and South India Rajasthani Chamber of Commerce, etc.

S.No Name of the Director No. of other

Directorship

No. of Shares held

in the company

Smt. Manju Parakh 1 11

No. of otherCommittee

Membership

358,385


The above Independent Directors have given a declaration to the Board that they meet the criteria of independence as provided under Section 149 (6) of the Act. In the opinion of the Board, the above Independent Directors fulfill the conditions specified in the Act and the Rules made thereunder for appointment as Independent Directors and they are independent of the Management. They are not disqualified from being appointed as Directors and have given their consent to act as Directors.

In terms of SEBI LODR, a brief profile of these Directors, who are proposed to be reappointed as Directors in this meeting for a term of five years in terms of the applicable provisions of the Act 2013, nature of their expertise in specific functional areas, their other directorships and committee memberships, their shareholding and relationship with other Directors in the Company are appended to the Notice annexed hereto. Both the aforesaid Directors satisfy the criteria and other attributes for appointment as IDs as per the requirements of the Act 2013 and, being eligible, offer themselves for reappointment for a term of five consecutive years from the expiry of their respective terms. Both the Nomination and Remuneration Committee of Directors and the Board were of the opinion, after evaluation of their performance and other attributes, that their continued association would be of immense benefit to the Company and it is desirable to avail their services as IDs for the said term of five consecutive years. Both these Directors fulfill the terms and conditions specified under the Act 2013 and rules made thereunder for their appointment as IDs by the shareholders and are independent of the Management. The IDs are entitled to receive remuneration by way of fees and reimbursement of expenses for participation in the meetings of the Board and / or Committees as determined by the Board from time to time, within the overall limits specified under the Act 2013.

In compliance with the provisions of Section 149 read with Schedule IV of the Act, the appointment of the above Directors as Independent Directors is now being placed before the Members in General Meeting for their approval by way of Special Resolutions. The Independent Directors do not receive any remuneration apart from sitting fees.

The terms and conditions of appointment of Independent Directors shall be open for inspection by the Members at the Registered Office of the Company on all working days, except Saturdays, during business hours upto the date of the Meeting.

Except Shri Sudhir K Patel for Item No.3 and Shri Ajit Kumar Chordia for Item No.4, none of the Directors or Key Managerial Person of the Company or their relatives are concerned or interested, financially or otherwise, in resolutions for appointment as set out in item nos. 3 & 4.

Item No.5

Shri Alok Parakh was reappointed as Joint Managing Director at the Annual General Meeting in 2016 for a period of 3 years from 01.10.2016 and his term expires on 30.09.2019.

It is proposed to seek the members' approval for the re-appointment of and remuneration payable to Alok Parakh as Joint Managing Director in terms of the applicable provisions of the Companies Act, 2013.

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S.No Name of the

Director

Brief Profile & Expertise

Mr. Alok Parakh is an engineeringgraduate and has done PG Diplomain Business Management fromIndian School of Business (ISB),Hyderabad. He has substantialexperience in plastic industry.

1

Other directorships& Committee Memberships

No. of Shares held in the Company

Shri Alok Parakh

No. of other Directorships : 1 No. of other Committee Memberships : 1

529,986


Broad particulars of the terms of re-appointment of and remuneration payable to Shri Alok Parakh is as follows:

Remuneration Payable:

1. Salary: Rs.3,25,000/- per month with annual increment not exceeding Rs.50000 /- p.m.

2. Perquisites :

Entitlement to rent free accommodation, medical reimbursement, club fees, personal accident insurance, etc. in accordance with the rules of the Company. The aforesaid perquisites may be in the form of reimbursement or allowances but will be restricted to Rs.10 Lakhs per annum. For the purpose of calculating the above ceiling, the perquisites shall be evaluated as per Income Tax rules wherever applicable.

Reimbursement of actual travelling, entertainment expenses reasonably incurred by the Joint Managing Director in connection with the business of the Company.

Actual hospital, medical expenses and premium for Medical Insurance policies which have been incurred by/for Joint Managing Director to the extent of Rs. 3,00,000/- per annum.

Eligibility for usage of a motor car of the Company in connection with business of the Company and all the expenses for the maintenance and running of the motor car including salary of the driver.

Eligibility for usage of Company's telephone at his residence, the charges of which shall be borne by the Company. However, any personal calls made by the Joint Managing Director shall be logged separately and paid for by him to the Company.

Eligibility to participate in the Provident Fund Scheme, Super Annuation Scheme, encashment of earned leave at the end of the tenure as per the rules of the Company which shall not be included in the computation of the perquisites.

3. Period of appointment : 3 years

4. Sitting Fees: The Joint Managing Director, so long as he functions as such, shall not be paid any sitting fees for attending the meetings of Board of Directors.

I. General Information:1. Nature of Industry: Plastic Manufacturing.2. Date or expected date of commencement of commercial production: Not Applicable3. Financial Performance based on given indicators:The Company's sales turnover during the year under review was Rs.7775.62 lakhs as compared to Rs. 6731.02 lakhs in the previous year. The profit before tax during the current year is Rs.156.75 lakhs as against Rs.132.33 lacs during the previous year.4.Foreign investments or Collaborators, if any: Not Applicable.

II.INFORMATION ABOUT APPOINTEE AND OTHER INFORMATION:

1. Background Detail:Mr. Alok Parakh is an engineering graduate and has done PG Diploma in Business Management from Indian School of Business (ISB), Hyderabad. He has substantial experience in plastic industry. He is also a Director in National Polyplast (India) Pvt Ltd. He has over 15 years of experience in plastic industry.

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2. Past Remuneration: Shri Alok Parakh was reappointed as Joint Managing Director of the Company for a period of 3 year from 01.10.2016 at a monthly remuneration of Rs. 3,25,000 with an annual increase not exceeding Rs.50,000 p.m. However, he has not been paid any remuneration during the year 2018-19.

3. Recognition or awards: Not Applicable

4. Job profile and suitability:Shri Alok Parakh shall be responsible for the operations and managing the Company under the superintendence, guidance and control of the Board. He has over 15 years of experience in Plastic Industry and is familiar with all facets of operations.

5. Remuneration proposed: The remuneration proposed is Rs.3,25,000 p.m. with annual increment not exceeding Rs. 50,000 p.m.

6. Comparative remuneration profile with respect to industry, size of the Company, profile of the position and person:Keeping in view the type of the industry, size of the Company, the responsibilities and profile of Shri Alok Parakh, the proposed remuneration is comparable with the remuneration paid by other companies in similar line of business to such managerial personnel.

7. Pecuniary relationship with the Company, or relationship with the managerial personnel:Shri Alok Parakh is the promoter of the Company. Shri Sudershan Parakh, Smt Manju Parakh and Shri Arihant Parakh may also be deemed to be interested in the resolutions pertaining to appointment of and/or remuneration to each other, as they are related to each other.

III: Other Information:

1. Reasons for inadequate profits:

Tough economic conditions and severe competition continue to affect the profitability of the Company.

2. Steps taken /to be taken for improvement:

The Company continues its efforts for cost reduction, change in product mix, addition of new clients and increase in turnover, to improve profitability.

3. Expected increase in productivity and profits:With increased turnover due to capacity additions, the Company expects higher production and profits. Also, the Company is simultaneously adopting cost cutting measures to improve profitability.

IV. Disclosures:

The details required to be furnished under the Disclosures, are already provided wherever applicable under Explanatory Statement and in Directors Report.

Shri Alok Parakh, being the appointee of the Company is interested in the proposed resolution to the extent of the remuneration payable to him. He has given his consent to be appointed as a Director. He is not disqualified from being appointed as a Director.

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Shri Sudershan Parakh, Smt Manju Parakh & Shri Arihant Parakh may also be deemed to be interested in the resolutions pertaining to appointment of and/or remuneration to each other, as they are related to each other. Save and except the above, none of the Directors

, in any way, concerned or interested in the resolution.

The terms and conditions set out for reappointment and payment of remuneration in the agreement may be altered and varied from time to time by the Board of Directors of the Company as it may at its discretion deem fit so as not to exceed the limits specified in Schedule V of the Companies Act, 2013 (including any statutory modification or re-enactment thereof, for the time being in force) or any amendments made thereto.

This explanation together with the accompanying Notice is and should be treated as an abstract of the terms of re-appointment of Joint Managing Director under the Companies Act, 2013.

The agreement entered into between the Company and Shri Alok Parakh is available for inspection at the registered office of the Company on any working day upto the date of Annual General Meeting between 10.00 am and 1.00 pm.

Your Directors recommend the resolution for your approval.

or Key Managerial Person of the Company or their relatives are

By order of the board, For National Plastic Technologies Limited

Date: 19.07.2019 Place: Chennai

S. Abishek Company Secretary

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Board’s Report

To the Members

Your Directors are pleased to present the 30th Annual Report of the Company along with the audited financial statements for the financial year ended March 31, 2019.

Financial Results

Performance Overview

During the year, your Company registered a revenue of Rs. 7833.18 lakhs as against Rs. 6821.60 Lakhs during the previous year. The EBITDA for the year has increased to Rs. 658.13 Lakhs as compared to Rs.504.13 Lakhs during the previous year. The profit before tax during the year is Rs. 156.75 Lakhs as compared to Rs. 132.33 lakhs.

Material Changes affecting the Financial Position of the Company

There are no material changes affecting the financial position of the Company subsequent to the end of the financial year till the date of this report.

Transfer to Reserves

During the year under review, your Company has not transferred any amount to general reserves from the current year profit. Amount is retained to meet the operations and growth prospects of the Company.

Dividend

Considering the need to conserve cash for the growth of Company, the Board of Directors have not recommended any dividend for the financial year ended 31.03.2019.

Share Capital

The paid up Equity Share Capital as on 31.03.2019 was Rs. 6,07,83,300. During the year under review, the Company has not issued any shares or convertible instruments.

13

Particulars

Revenue

EBITDA

(-) Finance Cost (I)

(-) Depreciation (D)

Profit Before Tax (PBT)

(-) Taxation

Net Profit/(Loss)

Year Ended 31.03.2019 Year Ended 31.03.2018

(Rs. in Lakhs)

6821.60

504.13

218.52

153.28

132.33

47.65

84.68

7833.18

658.13

317.72

183.66

156.75

-19.30

176.05


Deposits

The Company has neither received deposits in the previous years nor invited/accepted any deposits from the public during the year under review.

Directors and Key Managerial Personnel (KMP)

The Board of Directors consists of six Directors.

Board comprises of three Executive Directors, one Non-Executive Director and two Independent Directors.

Appointment of Directors:

Mr. Arihant Parakh, Director

The Board at its Meeting held on 25.09.2017 appointed Mr. Arihant Parakh as an Additional Director in Wholetime Capacity to manage and look after the operations of the Company. Subsequently, the Shareholders of the Company approved his appointment as Wholetime Director by way of Resolution dt.30.05.2018 passed through postal ballot.

Reappointment of Directors

Mr. Sudhir K Patel, Independent Director:

Mr. Sudhir K Patel was appointed as an Independent Director of the Company for a period of 5 years w.e.f. 24.9.2014 at the Annual General Meeting held on 24.9.2014. His term expires on 23.9.2019. He is proposed to be reappointed as Independent Director for a further period of 5 years w.e.f. 24.9.2019 at the forthcoming Annual General Meeting. He is eligible for reappointment and his appointment is being sought at the ensuing Annual General Meeting by way of a Special Resolution. The requisite details in this connection are contained in the Notice convening the Meeting.

Mr. Ajit Kumar Chordia, Independent Director:

Mr. Ajit Kumar Chordia was appointed as an Independent Director of the Company for a period of 5 years w.e.f. 24.9.2014 at the Annual General Meeting held on 24.9.2014. His term expires on 23.9.2019. He is proposed to be reappointed as Independent Director for a further period of 5 years w.e.f. 24.9.2019 at the forthcoming Annual General Meeting. He is eligible for reappointment and his appointment is being sought at the ensuing Annual General Meeting by way of a Special Resolution. The requisite details in this connection are contained in the Notice convening the Meeting.

Mrs. Manju Parakh, Non-Executive Director

Mrs. Manju Parakh, retires by rotation at the forthcoming Annual General Meeting and being eligible has offered herself for reappointment. Approval of the Members is being sought at the ensuing Annual General Meeting for her reappointment and the requisite details in this connection are contained in the Notice convening the Meeting.

Mr. Alok Parakh, Joint Managing Director:

Mr. Alok Parakh was appointed as Joint Managing Director of the Company for a period of 3 years w.e.f. 1.10.2016 at the Annual General Meeting held on 22.9.2016. His term expires on 30.9.2019.

14


He is proposed to be reappointed as Joint Managing Director for a further period of 3 years w.e.f. 1.10.2019 at the forthcoming Annual General Meeting. He is eligible for reappointment and his appointment is being sought at the ensuing Annual General Meeting. The remuneration payable to Mr. Alok Parakh is fixed in nature and there is no stock option, pension etc. The requisite details in this connection are contained in the Notice convening the Meeting.

Key Managerial Personnel:

Mr. Manikandan R was appointed as Chief Financial Officer of the Company w.e.f. 20.4.2019 and is in charge of the financial operations of the Company.

Mr. Abishek S was appointed as Company Secretary and Compliance Officer of the Company w.e.f. 24.9.2018.

Statement on Declaration given by the Independent Director

As required under Section 149(7) of the Companies Act 2013, all the Independent Directors have given their respective declarations that they meet the criteria of independence as specified in Section 149(6) of the Companies Act, 2013.

Board Meetings

During the year, Six Board Meetings were held, the details of which are given in the Corporate Governance Report.

Board Committees

In compliance with the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Company has constituted various Committees of the Board. The details on composition of the Committees, attendance of the Directors at the Committee Meetings and terms of reference of the Committees form part of this Annual Report.

Related Party Transactions

As per the requirements of the Companies Act 2013, all the Related Party Transactions are placed before the Audit Committee for review and approval. Prior omnibus approval/ ratification of the Committee have been obtained for transactions which are of foreseen and repetitive nature. The details of transactions proposed to be entered into with Related Parties on an annual basis are placed before the Committee. Besides, the Related Party Transactions entered during the year are also reviewed by the Board on an annual basis.

Contracts and Arrangements with Related Parties

All transactions entered by the Company during the financial year with Related Parties were in the ordinary course of business and on arm's length basis. The particulars of transactions entered with Related Parties, as referred to in Section 188(1) of the Companies Act, 2013, are provided in AOC-2 which is given as Annexure to this report.

Particulars of Subsidiary, Associate or Joint Venture Company

The Company does not have any Subsidiary or Associate or Joint Venture Company and hence the need for disclosure about Subsidiary, Associate and Joint Venture Company does not arise.

15


Internal controls system and their adequacy

The Company has designed and implemented a process driven framework for internal financial controls within the meaning of explanation to Section 134(5)(e) of the Companies Act, 2013 and the necessary control systems considering the business requirements, scale of operations and applicable status of the Company are in place in the organisation. The system includes the policies and procedures, delegation of authority, internal check, segregation of duties, internal audit and review framework, safeguarding of its assets, the prevention and detection of frauds and errors, ensuring of accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

Details of recommendations of Audit Committee which were not accepted by the Board along with reasons

The Audit Committee generally makes recommendations to the Board of Directors of the Company at its meetings held to consider any financial results (unaudited and audited) and such other matters placed before the Audit Committee as per the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. During the year, the Board of Directors have considered and accepted all the recommendations made by the Audit Committee.

Auditors

Statutory Auditors

The Company at its 27th AGM held on 22.09.2016 appointed M/s. C.A. Patel & Sanklecha, Chartered Accountants, Chennai (Firm Registration No.015669S) as Statutory Auditors of the Company to hold office for a period of 5 years from the conclusion of the said AGM. The Auditors have confirmed their eligibility under Section 141 of the Companies Act, 2013 and the rules framed there under for continuation of their term.

The report given by the Auditors on the financial statements of the Company is provided in the financial section of the Annual Report. There are no qualifications or reservations in their report. No instance of fraud was reported by the auditors under Section 143(12).

Cost Auditors

Since the business activities do not fall under the scope of cost audit, the Company has not appointed Cost Auditor to audit the records of the Company.

Secretarial Auditors

Pursuant to provisions under Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed M/s. BP & Associates, Company Secretaries to undertake the Secretarial Audit of the Company for the financial year ended 31.03.2019.The Secretarial Audit Report is attached. There is no qualification made by the Secretarial Auditors. With regard to the observation on appointment of Chief Financial Officer and Company Secretary within six months from the date of such vacancy, it is clarified that the process of identifying suitable candidates for the position of Chief Financial Officer and Company Secretary took some time and the same were later complied with.

16


Particulars of remuneration of Directors and Employees u/s 197(12) of the Companies Act, 2013

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 have been provided as Annexure to this report. There was no employee who received remuneration in excess of prescribed threshold limit.

Particulars of Loans, Guarantees and Investments U/S 186(4) of the Companies Act, 2013

The Company has not given Loans or Guarantees u/s186 of Companies Act, 2013. Please refer Note No.4 to Notes on Accounts for financial year 2018-19 for details of investment made by the Company.

Conservation of energy, technology transfer and foreign exchange earnings and outgo

(i) Conservation of energy

The Company understands the significance of conservation of energy which is also seen as a method for cost reduction. The Company has taken following steps for conserving the energy:

Change of circuitry in the machines developed in house to reduce power consumption.

Power saving equipments have been installed on machines and there has been considerable reduction in power consumption.

Heater insulation jackets have been provided on the machines to prevent the energy losses.

Timers have been installed to reduce the idle running of the motors preventing energy losses.

Natural lighting is being used in plants to avoid usage of industrial lamps in the day.

APFC Panels have been installed in all plants to maintain power factor, thus ensuring efficient energy management.

LED Lamps and Fittings have been installed in place of Metalhylide to save precious energy and costs.

(ii) Research and Development and Technology absorption

During the year under review, the Company continued to improve the quality of products through its normal development systems. The Company has not acquired any imported or indigenous technology.

(iii) Foreign Exchange Earnings and Outgo

(a) Foreign Exchange Earnings - Rs. Nil

(b) Foreign Exchange Outgo - Rs. 699 lacs

17


Corporate Governance Report

The report on Corporate Governance for the year ended 31.03.2019 pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed hereto and forms an integral part of this Report. The certificate from the Auditors regarding the compliance of conditions of Corporate Governance is attached to the report on Corporate Governance as an Annexure.

Management Discussion & Analysis Report

Management Discussion & Analysis Report for the year under review, as stipulated under Regulation 34(3) read with Schedule IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report.

Extract of Annual Return

Extract of Annual Return in the prescribed form is given as Annexure to this report in terms of the requirement of Section 134(3)(a) of Companies Act, 2013 read with Companies (Accounts) Rules, 2014. The same is available on the Company’s website www.nationalplasticsgroup.com.

Significant and material orders passed by the Regulators

There is no significant and material order passed by the Regulators or Courts or Tribunals impacting the going concern status of the Company's operations in future.

Risk Management Policy

The Company has developed and implemented Risk Management Policy. The Policy framework enables the Company to identify and evaluate risks, appropriately rate these risks and grade the same in accordance with their potential impact and likelihood. The two key components of risks are the probability (likelihood) of occurrence and the impact (consequence) of occurrence, if the risk occurs. Risk is analyzed by combining estimates of probability and impact in the context of existing control measures. This framework seeks to create transparency, minimize adverse impact on business objective and enhance the Company's competitive advantage. The risk framework defines the risk management approach across the Company at various levels including documentation and reporting.

Board Evaluation

The Directors appointed on the Board are from diverse fields with considerable experience in their fields for decades. Non-Executive Director(s) add substantial value through the deliberations at the Meetings of the Board and Committees thereof. To safeguard the interests of the investors, they play a crucial role in important Committees of the Board such as Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee etc. Besides contributing at the Meetings of the Board and Committees, the Non-Executive Directors also have offline deliberations with the Management of the Company and add value through such deliberations. The Non-Executive Directors are only paid Sitting Fees for attending Meetings of the Board. They are not paid any remuneration apart from Sitting Fees.

In a separate Meeting of Independent Directors held on 24.09.2018, performance was evaluated, taking into the account the views of Executive and Non-Executive Directors.

18


Director's Responsibility Statement

In accordance with the provisions of Section 134(5) of the Companies Act 2013, your Directors confirm:

1. That in the preparation of the annual accounts for the year ended 31.03.2019, the applicable accounting standards have been followed by your Company and there were no material departures.

2. That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

3. That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

4. That the Directors have prepared the annual accounts for the year ended 31.03.2019 on a going concern basis.

5. That the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

6. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Disclosures as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Adequate measures have been taken to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year under review, there were no complaints received pursuant to the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. No Compliant is pending as on 31.03.2019.

Corporate Social Responsibility (CSR)

The mandatory provisions of CSR under Section 135 of the Companies Act, 2013 are not applicable to the Company.

Acknowledgement

Your Directors place on record their appreciation of the co-operation and support extended by the Customers, Suppliers, Employees and assistance received from Bankers, Local Bodies and other Government Authorities.

On behalf of the BoardFor National Plastic Technologies Ltd

Place:Chennai

Date:19.07.2019 Sudershan Parakh Alok Parakh Managing Director Joint Managing Director

DIN: 01161124 DIN: 01417398

19


Management Discussion and Analysis Report

The Management Discussion and Analysis Report sets out developments in the business environment and the Company's performance. The analysis supplements the Board's Report, which forms part of this Annual Report.

Economy Overview

India is the one of the fastest growing economies in terms of GDP growth having a growth rate of 6.8 % for the year 2018-19. Despite the near term challenges, the long-term outlook for the Indian economy is promising. This provides a lot of opportunities for industries to expand.

Plastics Industry Scenario and Development

The Indian Plastics Industry has registered good growth over the last few years. The Industry makes significant contribution to economic development and growth of various key sectors in the country like Consumer Durables, Automotive, FMCG etc. The Industry is expected to touch the turnover of Rs.5 Lakh Cr mark by 2025 from existing size of Rs.2.25 Lakh Cr and employ around 6 million people to become one of the largest employers in India. Further, Government initiatives are opening up opportunities for accelerated growth in the Plastics Industry. Rapid urbanisation, increase in sale of packaged products through retail and e-commerce mode, low per capita consumption, shifting consumer lifestyles, large young population, many manufacturing segments adopting higher percentage of plastics, etc are contributing towards the growth of Plastics Industry.

The Indian Consumer Durable Industry

India is one of the largest Consumer Durables market and has registered very good growth in recent years. The Industry is expected to grow at a steady pace which augurs well for plastic parts manufacturers like us who cater to this Industry. Urban markets account for the major share of total revenues in the Consumer Durables sector in India. There is a lot of scope for growth from rural markets with consumption expected to grow in these areas as penetration of brands increases. Also, demand for Durables like refrigerators, washing machines, etc are likely to witness growing demand in the coming years, especially in the rural markets.

The Indian Auto Component Industry

Indian Automotive Component Industry has grown at a steady rate on the back of good demand for automobiles. In spite of the near term challenges faced by the Auto Industry, the long term outlook is robust due to low level of vehicle penetration, rising incomes and aspirations of the Indian consumer, wide availability of vehicle models at different price points, inadequate public transport and greater focus of OEMs on the under penetrated rural and semi-urban markets.

Company Overview & State of Affairs

Usage of plastic products in Automotive and Consumer Durable industries is rising due to its advantages in designing cost reduction and weight reduction. Further, the Industry itself is growing at a good pace thus creating opportunities for the Company. The Company is predominantly into manufacture of products for Automotive and Consumer Durable industries and is already a major supplier of plastic products to the above mentioned industries. The Company is well positioned to capitalize on the opportunities over the next few years. The financial performance of the Company is discussed in the Board’s Report.

20


Opportunities and Threats

While the rise in demand is an opportunity for the Industry, increased competition in the processing sector and fragmented nature of the plastic processing units are a threat to the Company.

Business Outlook

Current low per capita consumption level of plastic products as compared to developed countries suggests that India offers a huge opportunity over long term. Company has ample opportunities to grow by producing more products to meet the demand and achieve growth. The Company operates in only one business segment namely Moulded Plastic Products.

Risks and Concerns

Risks are adequately measured, estimated and controlled based on the type of risk or the activity that creates it. The Company's fundamental approach to risk management is to identify, measure and reduce risks through knowledge of the business.

Internal control systems and their adequacy

The Company has designed and implemented a process driven framework for internal financial controls within the meaning of the explanation to Section 134(5)(e) of the Companies Act, 2013 and the necessary control systems considering the business requirements, scale of operations and applicable statutes are in place in the organisation. The system includes the policies and procedures, delegation of authority, internal checks, segregation of duties, internal audit, review framework, etc. The Company has designed the necessary internal financial controls and systems with regard to adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, to maintain accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

Cautionary Statement

Statement made herein describing the Company's expectations or projections are “Forward looking statements”. The actual results may differ materially from those expected or forecast depending on market conditions, input costs, economic development, Government policies and other external factors.

Report on Corporate Governance

Pursuant to Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations”) read with Schedule V thereto, compliance with the requirements of Corporate Governance is set out below:

1. Company's philosophy on Code of Governance

The Company believes in transparency, professionalism and accountability, which are the basic principles of Corporate Governance and would constantly endeavour to improve on these aspects.

21


2. Board of Directors

Board Composition and Category of Directors

The Board of Directors is the body constituted by the Shareholders for overseeing the Company's overall functioning. The Company's policy is to maintain optimum combination of Executive and Non- Executive Directors so as to maintain the independence of the Board. As on 31.03.2019, the Company's Board consist of six Directors having considerable professional experience in their respective fields.

The composition, category & attendance of the Board are as follows:

During the financial year 2018-2019, the Board met 6 times (as against the minimum requirement of four meetings) on 6.4.2018, 30.5.2018, 14.8.18, 24.9.2018, 14.11.2018 and 13.2.2019. The composition, category and details of attendance are given below:

* NE-Non-Executive, NE-I – Non Executive Independent, E-Executive Director

#He was a Director in another listed company namely Arihant’s Securities Ltd as on 31.03.2019.

Mr. Sudershan Parakh, Mr. Alok Parakh, Mr. Arihant Parakh & Mrs. Manju Parakh are related to each other.

Board Evaluation

As required under the provisions of Section 134(3)(p) of the Companies Act, 2013, the Board has carried out a formal annual evaluation of the Board performance, and that of its Committees and individual Directors. The manner in which such performance evaluation was carried out is as under:

1. The performance evaluation by way of internal assessment that reviews the effectiveness and efficiency of the Board/Committees/individual Directors.

2. Self evaluation process.

22

Shri Sudershan Parakh

Shri Ajit Kumar Chordia#

Shri Sudhir K. Patel

Smt Manju Parakh

Shri Alok Parakh

Shri Arihant Parakh

E

NE-I

NE-I

NE

E

E

6

3

5

6

4

6

Yes

Yes

Yes

Yes

Yes

Yes

- 1

1 9

- 2

- 1

- 1

- -

Number of other Directorships and committee

Memberships / Chairmanships

Name of the DirectorCategory

of Director*

Attendance Particulars

Board meeting

Last AGMAttendedYes/No

OtherDirector –

Ships

CommitteeMemberships

CommitteeChairman-

ships

-

4

-

1

1

-

1

2

-

-

-

-

Public Private


Audit Committee

The constitution and terms of reference of the Audit Committee are in accordance with and cover all the matters specified under Section 177 of the Companies Act, 2013. The Company Secretary acts as the Secretary to the Audit Committee. Mr. Sudhir K Patel, Independent Director and Chairman of the Audit Committee was present at the Annual General Meeting of the Company held on 24.9.2018.

During the Financial Year 2018-19, five (5) Meetings of the Audit Committee were held on 30.5.2018, 14.8.2018, 24.9.18, 14.11.2018 and 13.2.2019.

The Company has a qualified and independent Audit Committee comprising of Non-Executive/Independent Directors. The Chairman of the Committee is an Independent Director.

Attendance record of Audit Committee members

The Constitution and terms of reference of the Nomination and Remuneration Committee are in accordance with and cover all the matters specified under Section 178 of the Companies Act, 2013. The NRC consists of 3 members viz. Shri Ajit Kumar Chordia, Shri Sudhir K Patel and Smt Manju Parakh. Shri Ajit Kumar Chordia is the Chairman of the Committee.

The Nomination and Remuneration Committee met on 6.4.2018 and 24.9.2018 where all the Members were present. The details of the policy are available on the website of the Company www.nationalplasticsgroup.com.

The Broad terms of the policy are as follows:

Evaluating the performance of the Directors, Key Managerial Persons and Senior Management and report to the Board.

Providing guidance to the Board for laying down terms and conditions in relation to appointment and removal of Directors, Key Managerial Personnel and Senior Management Personnel.

Recommending to the Board on remuneration payable to Directors, Key Managerial Personnel and Senior Management.

Retaining, motivating and promoting talent among employees and assisting in creating talent pool within the organization.

To develop succession plan for the Board and Management.

The scope of NRC is as follows:

To make recommendations to the Board with respect to incentive compensation plans for Executive Directors and remuneration of Non-Executive Directors.

Nomination and Remuneration Committee (NRC)

23

Name of the Director

Mr. Sudhir K Patel

Mrs. Manju Parakh

Mr. Ajit Kumar Chordia

S.No

1

2

3

No. of Meetings

5

5

5

Meetings attended

2

4

5


To recommend to the Board for appointment and removal of Directors, Key Management Personnel and Senior Management of the Company.

To identify persons who are qualified to become Directors, Key Managerial Personnel and Senior Management.

To formulate criteria for determining qualification, positive attributes and independence of a Director.

The performance evaluation of the Board as a whole was and is being assessed based on criteria like its composition, size, mix of skills and experience, effectiveness of discussion, decision making, follow up action, quality of information, governance issues and the performance and reporting by various Committees set up by the Board. The Nomination and Remuneration Committee (NRC) of the Board is responsible for identifying persons for initial nomination as Directors and evaluating incumbent Directors for their continued service. The following are the qualifications, positive attributes and independence criteria laid down by the NRC:

Qualifications: The qualification would include the following: 1. Personal Traits 2. Shares the values and beliefs of the Company. 3. High professional ethics, integrity and values 4. Demonstrates intelligence, maturity, wisdom and independent judgment. 5. Self-confidence to contribute to Board deliberations, has a stature that other Board Members will respect his or her views. 6. Well accomplished in his / her respective field. 7. Leadership role.

Positive Attributes: The positive attributes for a Director would include 1. Ethics, Integrity & Transparency. 2. Demonstration of sound judgement gained through experience & expertise in management/ technical/ financial governance or regulatory matters. 3. Foresight - ability to anticipate opportunities and threats. 4. Managerial abilities.

Independence: A Director is independent if the Board affirmatively determines that he/she meets the independence criteria provided under the applicable laws. In addition to applying these guidelines, the Board considers all relevant facts and circumstances in making its determination relative to a Director's independence. The Board has affirmed that the Independent Directors meets the criteria of Independence.

Directors Remuneration

The Non-Executive Independent Directors of the Company are paid sitting fees for attending the Meetings of the Board of Directors / Committees of Board of Directors.

The details of the remuneration paid to the Directors are given below:

E-Executive Director, NE-Non-Executive Director, NE-I- Non-Executive Independent Director

24


Smt Manju Parakh

Shri Alok Parakh

Shri Sudhir K. Patel

Shri Ajit Kumar Chordia

Shri Arihant Parakh

E

NE

E

NE-I

NE-I

E

15,18,505

3,58,385

5,29,986

-

-

6,52,302

-

-

-

43,000

10,500

-

-

-

-

-

-

9,00,000

-

-

-

-

-

-

Name of the Director CategorySitting

Fees (Rs.)

No. of sharesheld as on 31.03.19

GrossRemuneration

(Rs.)

Commission

(Rs.)

-

-

-

9,00,000

43,000

10,500

Total (Rs.)


Note: The gross remuneration payable to Executive Directors includes salary and perquisites which are fixed in nature. There is no variable pay, performance linked incentives or severance fee. Notice period & service contracts shall be as per Company's policy. The Company does not have any stock option scheme. Independent Directors are paid sitting fees and are not paid any remuneration.

Stakeholders Relationship Committee

The constitution and terms of reference of the Stakeholders Relationship Committee are in accordance with and cover all the matters specified under Section 178 of the Companies Act, 2013 and Regulation 20 of the Regulations read with Part D of Schedule II of the Regulations.

The Stakeholders Relationship Committee looks into redressal of Shareholders/Investors complaints like transfer of shares, non-receipt of Annual Reports, non-receipt of declared dividends, etc. The Committee also ratifies share transfers/transmission/name deletion cases etc from time to time. Stakeholders Relationship Committee functions under the Chairmanship of Shri Sudhir K Patel, with Shri Sudershan Parakh & Shri Ajit Kumar Chordia as members. Company Secretary and in his absence, Managing Director acts as Compliance Officer.

The Company adopts the policy of disposing of investor complaints within a period of 10 days. The Stakeholders Relationship Committee met 17 times on 16.4.18, 26.4.18, 18.6.18, 10.7.18, 10.8.18, 1.9.18, 7.9.18, 10.9.18, 12.10.18, 31.10.18, 31.12.18, 18.1.19, 25.1.19, 8.2.19, 8.3.19, 22.3.19 & 30.3.19.

The terms of reference of Stakeholders Relationship Committee have been expanded and the following agenda items are being placed before the Committee:

a) Consolidated statement of transfer of shares/transmission/deletion etc duly approved by Company Secretary/MD from time to time.

b) Certificate issued by Practicing Company Secretary in connection with secretarial audit every quarter, physical share transfer audit half yearly and Corporate Governance Report annually.

c) Details of Shareholder complaints received, redressed, pending, etc during a particular quarter.

d) List of Top 10 / 100 Shareholders at the end of every quarter.

e) Any other item with the permission of the Board.

Attendance record of Stake Holders Relationship Committee:

The Company had not received any Investor Complaint during the year 2018-19 and there is no Investor Complaint pending as on 31.03.2019.

25

Name of the Director

Mr. Ajit Kumar Chordia

Mr. Sudhir K Patel

Mr. Sudershan Parakh

S.No

1

2

3

No. of Meetings

17

17

17

No of Meetings attended

17

17

4


General Body Meeting

Annual General Meeting

Extra-Ordinary General Meeting

During the year 2018-19, No Extra Ordinary General Meeting (EGM) was held.

Postal Ballot

During the year 2018-19, General Meeting (GM) of shareholders was held on 30.5.2018 through postal ballot for raising borrowing limit under Sections 180(1)(c), 180(1)(a) and for appointment of Mr. Arihant Parakh as Wholetime Director. All the resolutions were duly passed by the Shareholders.

There were no requirements for seeking approval of the Shareholders by a Postal Ballot in respect of any subject placed before the shareholders in the last General Meeting.

Disclosures

(A) Disclosures on materially significant Related Party Transactions i.e., transactions of the Company of material nature with its Promoters, the Directors or the Management, their subsidiaries or relatives etc. that may have potential conflict with the interest of Company at large – None.

(B) Details of non-compliance by the Company, penalties, and strictures imposed on the Company by Stock Exchanges or SEBI or any Statutory Authorities on any matter related to capital markets during the last three years - None.

Means of Communication

Quarterly Results

(a) The Quarterly Results of the Company are taken on record by the Board of Directors and submitted to Stock Exchanges. The Results are being published in English and Tamil newspapers i.e. News Today and Maalai Sudar.

(b) Management Discussions and Analysis Report form part of the Annual Report.

26

2016

2017

2018

22.09.2016

25.09.2017

24.09.2018

10.30 A.M

10.30 A.M

10.30 A.M

The Hall of Ragaas,

47, First Avenue, Sastri Nagar,

Chennai - 600 020.

The Hall of Ragaas,


Chennai - 600 020.

The Hall of Ragaas,


Chennai - 600 020.

Venue Date TimeYear


General Shareholder Information

Company Registration Details

National Plastic Technologies Limited was incorporated on 12th May, 1989. The Corporate Identity Number allotted to the Company by the Ministry of Corporate Affairs is L25209TN1989PLC017413.

The registered office of the Company is situated at Thiru Complex, 44, Pantheon Road, Egmore, Chennai - 600008.

Annual General Meeting

Date & Time 11th September, 2019 at 10.30 a.m.

Venue The Hall of Ragaas, 47, First Avenue, Sastri Nagar, Adyar, Chennai - 600 020.

Book Closure

The transfer books of the Company shall be closed from 7th September, 2019 to 11th September, 2019 (both days inclusive).

Listing of Equity Shares

Equity Shares of the Company are listed in BSE Limited.

Stock Code : 531287

Security ID : NATPLASTI

ISIN : INE896D01017

Market Price Data and Performance of the share price of the Company

High, Low (Based on daily closing prices) traded during each month in the year 2018-19 on BSE.

27

Company's Share Price at BSE and VolumesYear and

Month High Price(Rs.)

Low Price(Rs.)

No. of Shares

BSE Sensex(High)

BSE Sensex(Low)

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

44.00

40.65

41.10

42.40

43.10

38.30

39.35

39.60

36.00

35.10

38.15

36.20

6,851

8,165

6,465

6,613

7,793

7,548

11,286

1,667

29,639

26,948

7,656

14,264

1,36,376

35,213.30

35,993.53

35,877.41

37,644.59

38,989.65

38,934.35

36,616.64

36,389.22

36,554.99

36,701.03

37,172.18

38,748.54

32,972.56

34,302.89

34,784.68

35,106.57

37,128.99

35,985.63

33,291.58

34,303.38

34,426.29

35,375.51

35,287.16

35,926.94

37.55

34.05

34.15

34.10

33.10

33.30

31.50

33.25

31.95

32.00

32.35

32.40

Total


Payment of Listing Fees/Custodian Fees

Annual Listing Fee for the financial year 2019-20 has been paid by the Company to BSE. Annual Custodian fee has been paid by the Company to NSDL and CDSL.

Registrar and Share Transfer Agent (RTA)

M/s. Cameo Corporate Services Limited

Subramanian Building, No. 1, Club House Road, Chennai – 600 002,

Tel: 044-2846 0390; Fax: 044 2846 0129,

Email: [email protected],

Website: www.cameoindia.com.

Share Transfer System

Share transfers in physical form can be lodged with M/s Cameo Corporate Services Limited, Chennai– 600 002. The transfers are normally processed within 2 weeks from the date of receipt, subject to the documents being valid in all respects. In the Demat segment, M/s. Cameo Share Registry Limited are acting as registrars for providing the connectivity with NSDL and CDSL.

Share transfers in physical form are processed and share certificates duly endorsed are returned within a period of fifteen days from the date of receipt, subject to documents being valid and complete in all respects. The Board has delegated the authority for approving transfer, transmission, etc to Share Transfer Committee which approves the transfers which are also noted at the subsequent Board Meeting.

Dematerialisation of Shares and Liquidity

The shares of the Company are under the category of compulsory delivery in dematerialisation mode by all categories of investors. The Company has signed agreements with both the depositories, i.e, National Securities Depository Limited (NSDL) and Central Depository Services (India) Ltd (CDSL). As on 31.03.2019, the status on the dematerialisation of the Equity shares of the Company is given below:

Total number of Equity Shares : 60,78,330

ISIN Numbers in NSDL & CDSL for Equity Shares: ISIN: INE896D01017.

Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, Conversion date and likely impact on equity

The Company has not issued any GDRs/ADRS/Warrants or any Convertible Instruments in the past and hence as on 31.03.2019, the Company does not have any outstanding GDRs/ADRs/Warrants or any Convertible Instruments.

28

Mode of shareholding

Physical Mode

Electronic Mode

No. of Shares

3,84,560

56,93,770

% to Total Equity Shares

6.33

93.67


Plant Locations

1.Chennai: E-5, Industrial Estate, Guindy, Chennai - 600 032, Tamil Nadu.

2.Irrungattukottai: C-12,Sipcot Industrial Park, Irungattukottai-602105, Tamil Nadu.

3.Himachal Pradesh: Khasra No 311,Dhermajra, Hadbast , No 103, Tehsil Nalagarh, Solan,

Himachal Pradesh - 174101

4. Pondicherry: Thiruvandar Koil, Mannadipet Commune Panchayat, Pondicherry.

Distribution of Shareholding by Size as on March 31, 2019

Address for Correspondence

The Shareholders may address their communication/suggestions/grievances/queries to

The Company SecretaryNational Plastic Technologies Ltd44, Pantheon Road Chennai - 600 008, Ph: 044 43404340. Email: [email protected].

Tentative Calendar of Events for Financial Year 2019-20 (April – March)

Annual General Meeting : Sept' 2020 (next year)

Quarterly Results:

29

Quarter

I

II

III

IV

Period

April – June

July – September

October – December

January – March

Date

19th July'2019

On or before 14th Nov' 2019

On or before 14th Feb'20

On or before 30th May'20

Shareholding of

Nominal Value(Rs.)

Number of

Shareholders

% of Total

Shareholders

Shareholding of

Nominal Value (Rs.)

% of TotalShares held

Upto 1000

1001-5000

5001-10000

10001-20000

20001-30000

30001-40000

40001-50000

50001-100000

100001 & Above

Total

1191

890

144

82

55

12

19

29

44

2466

48.3

36.09

5.84

3.33

2.23

0.49

0.77

1.18

1.78

100

285970

2452990

1238000

1268490

1400860

416980

901240

2114360

50704410

60783300

0.47

4.04

2.04

2.09

2.3

0.69

1.48

3.48

83.42

100


Compliance(s) of matters relating to Capital Market

The Company has complied with all applicable rules and regulations prescribed by Stock Exchange (BSE), Securities and Exchange Board of India (SEBI) and any other Statutory Authority relating to the capital markets. No penalties or strictures have been imposed on the Company in the last 3 years.

Transfer to Investor Education and Protection Fund

As at 31.03.2019, dividends amounting to Rs. 2.34 lakhs have not been claimed by Shareholders. The Company had intimated the Shareholders to lodge their claim for unclaimed dividend & shares from time to time.

As per the provisions of Section 124 of the Companies Act, 2013 as amended or re-enacted, dividends which remained unpaid or unclaimed for a period of 7 years from the date of transfer to the unpaid dividend account are required to be credited to IEPF.

The unclaimed dividend amount of Rs. 2.34 Lakhs pertaining to financial year 2010-11 was transferred to IEPF on 3.5.19 after providing adequate time to shareholders to claim the same. As on date of this report, there is no unclaimed dividend in the books of the Company. There were 115007 shares in unclaimed shares account as at the beginning of the year. The same have been transferred to IEPF during the year. There are no unclaimed shares which are required to be transferred to IEPF as on 31.03.2019.

Shareholding Pattern as on 31.03.2019

Mandatory Disclosures

Shareholder rights

As the Company's half-yearly results are published in English and Tamil newspapers, the same are not sent to the Shareholders separately. There are no second half-yearly results, as the audited results are taken on record by the Board of Directors and then communicated to the Shareholders through the Annual Report.

30

S.No Category No. of shares held % of shareholding

1

2

3

4

5

6

7

8

9

Promoters

Foreign Collaborators

Foreign Institutional Investors

Clearing Members

Banks/ Mutual Funds

Bodies Corporate

NRIs / OCBs

Individuals / HUF

IEPF Authority

Grand Total

3703888

-

-

-

-

184813

54760

2019862

115007

6078330

60.94

-

-

-

-

3.04

0.91

33.22

1.89

100.00


Whistle Blower policy/Vigil Mechanism

The Company has Whistle Blower policy/Vigil Mechanism to provide an avenue to raise concerns. The mechanism provides for adequate safeguards against victimization of employees who avail of it, to which employees of the Company can raise their concerns relating to fraud, malpractice or any other activity or event which is against the interest of the Company. The existence of the mechanism was appropriately communicated within the organization. No personnel of the Company have been denied access to the Audit Committee.

Issue of securities

During the year under review, the Company had not raised any money from public issue, rights issue, preferential issue or any other issues.

Request to Investors

Investors are requested to note the following procedure:

(a) If you are holding shares in physical mode, please communicate the change of address, if any, directly to the registered office of the Company or to the share registrars.

(b) Investors who have not availed nomination facility are requested to avail the same, by submitting the nomination form. The form will be made available on request.

(c) Investors holding shares in electronic form are requested to deal only with their depository participant in respect of change of address, nomination facility and furnishing bank account number.

Declaration of Code of Conduct

It is hereby declared that the Company's Code of Conduct has been accepted and has been complied with, by all Board Members and Key Management Personnel as envisaged in Listing Regulation.

Related Party Transactions

All transactions entered into with Related Parties as defined under the Companies Act, 2013 and Listing Regulations during the financial year 2018-19 were in ordinary course of business and at arm's length price and do not attract the provisions of Section 188 of the Companies Act, 2013 and the rules made thereunder. There were no materially significant transactions with related parties during the year which were in conflict of interest with the Company and that require an approval of the Company in terms of Listing Regulations. The transactions with Related Parties of routine nature have been reported elsewhere in the Annual Report as per Ind AS.

Risk Management

The Company has laid down procedures to inform Board about the risk assessment and mitigation procedures to ensure that executive management controls risk through means of properly defined framework.

MD & CFO Certification

The Managing Director & CFO have certified to the Board on financial and other matters in accordance Listing Regulations pertaining to CEO & CFO certification for the financial year ended 31.03.2019.

31


Code of Conduct for Prevention of Insider Trading:

In Compliance with Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 the Company has formulated a comprehensive Code of Practices and Procedures for fair disclosure of Unpublished Price Sensitive Information (UPSI) and a Code of Conduct to regulate, monitor and report trading by insiders in accordance with the requirements of the above Regulation.

Quality and Cost Management

The Company holds ISO 9001:2008 and TS/16949:2009 Certifications.

Human Resource Development

The Company strongly believes that well trained and motivated manpower are key to customer satisfaction and success. There is absolute harmony between the management and workforce. As on 31.03.2019, the Company has 271 employees on its roll. Also, the Company has adopted Sexual Harassment Prevention, Prohibition & Redressal policy.

Industrial Relations

Industrial relations in all the units of the Company remained cordial and peaceful throughout the year.

Declaration by the Managing Director under Para D of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding Adherence to the Code of Conduct

In accordance with Para D of the Schedule V of SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015, I hereby confirm that, all the Directors and the Senior Management Personnel of the Company have affirmed compliance with their respective Codes of Conduct, as applicable to them, for the financial year ended 31.03.2019.

For National Plastic Technologies Limited

Place : ChennaiDate : 19.07.2019 Sudershan Parakh

Managing Director

32


Details Pertaining to Remuneration as Required Under Section 197(12) of the Companies Act, 2013 Read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

A) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year and the percentage increase in remuneration of each Director, Chief Financial Officer, Company Secretary in the financial year:

* - Independent Directors. ** - Non Executive Directors - No Remuneration Paid.

B) The median remuneration for the year 2018-19 is Rs 1,34,000/-.

C) The percentage increase in the median remuneration of employees in the financial year : 2.09%

D) The number of permanent employees on the rolls of Company – 271.

E) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification there of:

Increase in remuneration is based on remuneration policy of the Company.

F) Affirmation that the remuneration is as per the remuneration policy of the Company.

The Company affirms remuneration is as per the remuneration policy of the Company.

33


Shri Alok Parakh

Smt Manju Parakh**

Shri Ajit Kumar Chordia*

Shri Sudhir K Patel*

Shri Arihant Parakh

Shri Abishek S

Ratio to the Median

NA

NA

-

-

-

6.72 : 1

1.57 : 1

Name of the Director & KMP % increase in Remuneration 17-18

NA

NA

-

-

-

Nil

NA


Form No. AOC-2(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm's length basis: Not Applicable

(a) Name(s) of the related party and nature of relationship(b) Nature of contracts/arrangements/transactions(c) Duration of the contracts / arrangements/transactions(d) Salient terms of the contracts or arrangements or transactions including the value, if any(e) Justification for entering into such contracts or arrangements or transactions(f) Date(s) of approval by the Board(g) Amount paid as advances, if any:(h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188

2. Details of material contracts or arrangement or transactions at arm's length basis:

34

(a)

(b)

(c)

(d)

(a)

(b)

(c)

(d)

Nature of contracts

/arrangements

Lease rent received

Sale of Goods

Purchase of goods

Machinery Rent

Receiving Services

Purchase of Fixed Assets

Salient terms

At market rates

At market price

At market price

At market price

At market price

At market rate

Name of the related party

Nature of relationship

Duration of Contract/arrangements

Date(s) of approval by the Board, if any





Goods/ Services

Letting out of Property

Plastic Components

Plastic Components

Rent Receipts

Job Work

Fixed Assets

National Polyplast (India) Pvt Ltd.

Group Company

2018-19

24.09.2018

National Autoplast

Group firm

2018-19

24.09.2018

Amount of Contract

(Rs. in lacs)

366.00

77.10

37.96

2.00

57.76

9.66


35

On behalf of the BoardFor National Plastic Technologies Ltd

Place:Chennai Date:19.07.2019

Sd/- Sd/- Managing Director Joint Managing Director

Nature of contracts

/arrangements

Sale of goods

Purchase of goods

Receiving service

Rendering service

Rental

Sale of shares

Purchase of shares

Salient terms

At market price

At market price

At market rates

At market rates

At Cost

At Cost

At market rates

Goods/ Services

Plastic components

Plastic components

Job work, etc

Job work, etc.

Machinery rental services

Shares

Shares

Amount of Contract

(Rs. in lacs)

25.27

48.69

0.05

3.51

2.50

0.11

0.12

Nature of contracts

/arrangements

Interest on

unsecured loans

Salient terms

Interest at

market rates

Goods/ Services

NA

Amount of Contract

(Rs. in lacs)

2.14

(a)

(b)

(c)

(d)

(a)

(b)

(c)

(d)









Shri. Sudershan Parakh

Managing Director

2018-19

24.09.2018

Shri Arihant Parakh

Director

2018-19

24.09.2018

Nature of contracts

/arrangements

Management

Contracts

Salient terms

As Per the

Agreement

Goods/ Services

NA

Amount of Contract

(Rs. in lacs)

9.00


36

II Principal Business Activities of the Company

SL No Name & Description of main

products/services

NIC Code of the

Product /service

% to total turnover

of the company

1 Plastic Moulded Components 2013 100

III Particulars of Holding , Subsidiary & Associate Companies

Sl No Name & Address of the Company CIN/GLN HOLDING/

SUBSIDIARY/

ASSOCIATE

% OF

SHARES

HELD

APPLICABLE

SECTION

1 NIL

All the business activities contributing 10% or more of the total turnover of the company

shall be stated

I Registration & other details:

i CIN

ii Registration Date

iii Name of the Company

iv Category/Sub-category of the Company

v

Address of the Registered office

& contact details

vi Whether listed company

vii Name , Address & contact details of the

Registrar & Transfer Agent, if any.

FORM NO. MGT 9

Extract of Annual Return

As on financial year ended on March 31, 2019

L25209TN1989PLC017413

12th May, 1989

National Plastic Technologies Ltd

No.44, Thiru Complex, Pantheon Road,

Egmore, Chennai-600008

Yes

Cameo Corporate Services Ltd.

Subramanian Building, No.1, Club House

Road, Chennai - 600002.

Tel No. 044-2846 0390;

Fax: 044-2846 0129

Email: [email protected]

Website: www.cameoindia.com

Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the

Company (Management & Administration ) Rules, 2014.

Public Company Limited by Shares;


37

IV. Shareholding Pattern (Equity Share Capital break up as % to total Equity)

Category of Shareholders % change during the Year

Demat Physical Total % of Total

Shares

Demat Physical Total % of Total

Shares

A. Promoters

(1) Indiana) Individual/HUF 3001043 1000 3002043 49.39 3103888 0 3103888 51.07 1.68b) Central Govt.or

State Govt.c) Bodies Corporates 600000 0 600000 9.87 600000 0 600000 9.87 0.00d) Bank/FIe) Any other

SUB TOTAL:(A) (1) 3601043 1000 3602043 59.26 3703888 0 3703888 60.94 1.68

(2) Foreign

a) NRI- Individualsb) Bodies Corp.c) Banks/FId) Qualified Foreign Investore) Any other

SUB TOTAL (A) (2) - - - - - - - - -

Total Shareholdingof Promoter (A)= (A)(1)+(A)(2) 3601043 1000 3602043 59.26 3703888 0 3703888 60.94 1.68

B. PUBLIC SHAREHOLDING

(1) Institutionsa) Mutual Fundsb) Banks/FIc) Central govtd) Venture Capital Funde) Insurance Companiesf) FIIsg) Foreign Venture

Capital Fundsh) Qualified Foreign Investori) Others (specify)

SUB TOTAL (B)(1): - - - - - - - - -

(2) Non Institutionsa) Bodies corporates 191848 49900 241748 3.98 136413 48400 184813 3.04 -0.94

0 0 0 0.00 0 0 0 0.00 0.00b) Individuals

No. of Shares held at the beginning of the year No. of Shares held at the end of the year


38

i) Individual shareholders holding nominal share capital upto Rs.1 lakh 18.85

ii) Individual shareholders holding nominal share capital in Rs. 1 lakh

excess of

c) Others (specify)

Clearing Member

HUF

Non-resident Indian

SUB TOTAL (B)(2):

Total Public Shareholding(B)= (B)(1)+(B)(2)

C. Shares held by Custodian for GDRs & ADRs

-

Grand Total (A+B+C) 100 0.00

(V) Shareholding of Promoters

SlNo. Shareholders Name % change

in share holding

during the year

No ofshares

% of total sharesof the

company

% of shares pledged

encumbered to total shares

No ofshares

% of total of

the companyshares

% of shares

encumberedpledged

to total shares

1 National Polyplast (India) P Ltd 600000

44710

1518505

334735

482380

621713

3602043

0 0

2 0

3

Bachhraj Parakh (HUF)

0

4 Manju Parakh

5 Alok Parakh

6 Arihant Parakh

Total

Shareholding at the begginning of the year

Shareholding at the end of the year

1015905

671681

21900

410176

1037805

1081857

17.07

17.80

793781

882993

21900

262660

815681

1145653

13.42 -3.65

1.05

492 0 492 0.01 -0.01

59185 0 59185 0.97 58528 0 58528 0.96 -0.01

3600 51600 55200 0.91 3160 51600 54760 0.90 -0.01

1942711 533576 2476287 40.74 1989882 384560 2374442 39.06 -1.68

1942711 533576 2476287 40.74 1989882 384560 2374442 39.06 -1.68

5543754 534576 6078330 100 5693770 384560 6078330

Sudershan Parakh

9.87

0.74

24.98

5.50

7.94

10.23

59.26

0

0

0

0

600000

44710

1518505

358385

529986

652302

3703888

9.87

0.74

24.98

5.90

8.72

10.73

60.94

0

0

0

0

0

0

0.00

0.00

0.00

0.40

0.78

0.50

1.68

- -- -

IEPF - -- - 115007 115007 1.89 1.89-


39

(VI) Change in Promoters Shareholding

Sl. No.

No. of Shares % of total shares

of the company

No of shares % of total shares of the company

1 Sudershan Parakh

At the beginning of the year 1518505 24.98

increase/decrease in Promoters

Shareholding during the year -

Market Purchase during 2018-19 0 0.00 1518505 24.98

At the end of the year 1518505 24.98

2 Arihant Parakh






3 Alok Parakh






4 Manju Parakh






(VII) Shareholding Pattern of top ten Shareholders (other than Direcors, Promoters & Holders of GDRs & ADRs)

Shareholding at the beginning

of the Year

Cumulative Shareholding duringthe year

For Each of the Top 10 Shareholders No.of shares% of total shares of

the company No of shares% of total shares of

the company

1 SANJIV CHANDRAKANT SHAH &SONAL SANJIV SHAH

At the beginning of the year 235176 3.87increase/decrease in Shareholding during the year -21979 -0.36 213197 3.51At the end of the year 213197 3.51

2 DEEPINDER SINGH POONIANAt the beginning of the year 198930 3.27increase/decrease in Shareholding during the year 0 0 198930 3.27At the end of the year 198930 3.27


40

4

3

RAVIKANT CHOWDHARY

INVESTOR EDUCATION & PROTECTION FUND

At the beginning of the year


96471

0

1.59

0

increase/decrease in Shareholding


during the year

during the year

0

115007

0

1.89

96471

115007

1.59

1.89

At the end of the year


96471

115007

1.59

1.89

5 ARIHANTS SECURITIES LIMITED



during the year 0 0 52500 0.86


6 RAJENDRA KUMAR BENGANI





7 CRB CAPITAL MARKETS LTD





8 MEENA SAKARIYA





9 KALPANA PRAKASH PANDEY



during the year 1489 0.03 35137 0.58


10 PRAVEENCHAND NAHAR

At the beginning of the year 0 0


during the year 28480 0.47 28480 0.47



41

(VIII) Shareholding of Directors & KMP

Director No.of shares % of total shares of the company


1 Sudershan Parakh



Share holding during the year -

Market Purchase during 2018-19


Director No.of shares % of total shares

of the company

No of shares % of total shares

of the company

2 Manju Parakh








3 Alok Parakh








4 Mr. Sudhir K Patel


Increase/decrease in

Shareholding 2018-19during the year 0 0 0 0

At the end of the year 0 0

Director No.of shares % of total shares

of the companyNo of shares % of total shares

of the company

5 Mr. Ajit Kumar Chordia


Increase/decrease in Shareholding 2018-19during the year 0 0 0 0

At the end of the year 0 0

Sl. No Shareholding Cumulative Shareholding during the year





1518505 24.98

0 0.00 1518505 24.98

1518505 24.98

334735 5.50

23650 0.40 358385 5.90

358385 5.90

482380 7.94

47606 0.78 529986 8.72

529986 8.72


42


No of shares % of total shares

of the company

6 Arihant Parakh







IX. IndebtednessRs.

X. Remuneration of Directors and Key Managerial PersonnelA. Remuneration to Managing Director, Wholetime Director and/or Manager: Rs.

Sl.NoMr. Sudershan

ParakhMr. Alok Parakh

Mr. Arihant Parakh Total

1

0 0 900000 900000

- - -

- - - -2 - - - -3 - - - -4 - - - -

- - - -- - - -

5 - - - -0 0 900000 900000

10% of Net Profit

(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961

c ) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961

(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961.

as % of profitothers (specify)Others, please specifyTotal (A)

Stock optionSweat EquityCommission

Particulars of Remuneration Gross salary

Ceiling as per the Act

621713 10.23

30589 0.50 652302 10.73

652302 10.73

Indebtedness of the Company including interest outstanding/accrued but not due for paymentSecured Loans

excluding depositsUnsecured

LoansDeposits Total

Indebtedness

i) Principal Amount 0ii) Interest due but not paid - - -iii) Interest accrued but not due - - -Total (i+ii+iii) 0

000

0ii) Interest due but not paid - - -iii) Interest accrued but not due - - -Total (i+ii+iii) 0

Nil

Nil

Nil

Net Change

i) Principal Amount

Change in Indebtedness duringthe financial year

AdditionsReduction

Indebtness at the beginning

of the financial year

Indebtedness at the end of the financial year

234849090

234849090

1262359280

126235928

361085018

361085018

234849090

234849090

1262359280

126235928

361085018

361085018


43

B. Remuneration to other Directors:Rs.

Sl.No

Mr. Sudhir K Patel Mr. Ajit Kumar Chordia

Mrs. Manju Parakh

Total Amount

1

43000 10500 - 53500- - - -- - - -

43000 10500 - 535002 Other Non Executive Directors

- - - -- - - -- - - -- - - -

43000 10500 - 5350043000 10500 - 53500

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

Rs.

Sl. No.Key Managerial

Personnel

1Mr. Abishek S

Company

Secretary *

210,000

-2 -3 -4 -

--

5 -210,000

* Appointed w.e.f. 24.09.2018

as % of profitothers, specifyOthers, please specifyTotal

(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961

c ) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961

Stock OptionSweat EquityCommission

(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961.

Total Managerial Remuneration

Gross Salary

Particulars of Remuneration

(a) Fee for attending board committee meetingsIndependent Directors

(b) Commission(c) Others, please specifyTotal (1)

(b) Commission(c ) Others, please specify.Total (2)Total (B)=(1+2)

(a) Fee for attending board committee meetings

Particulars of Remuneration


44

(XI) Penalties/Punishment/Compounding of offences

Type Section of

the

Companies

Act

Brief

Description

Details of

Penalty/Punish

ment/Compoun

ding fees

imposed

Authority

(RD/NCLT/C

ourt)

Appeal made

if any (give

details)

Penalty

Punishment

Compounding

Penalty

Punishment

Compounding

Penalty

Punishment

Compounding

On behalf of the Board

For National Plastic Technologies Ltd

Place: Chennai

Date:19.07.2019

Alok ParakhSudershan Parakh

Managing Director Joint Managing Director

Nil

A. COMPANY

B. DIRECTORS

C. OTHER OFFICERS IN DEFAULT

Nil

Nil


Independent Auditor's Certificate on Corporate Governance

To The Members of National Plastic Technologies Limited.

1. We have examined the compliance of Corporate Governance by M/s. National Plastic

Technologies Limited (The Company) for the year ended 31st March, 2019, as mentioned under

regulations 17 to 27 and Clauses (b) to (I)of Regulation 46(2) and Para C and D of Schedule V of SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, for the financial

year ended 31st March, 2019.

2. The compliance of the conditions of Corporate Governance is the responsibility of the Company's

management. This responsibility includes the design, implementation and maintenance of internal

control and procedure to ensure the compliance with the conditions of the Corporate Governance

stipulated in the SEBI Listing Regulations. Our examination was limited to procedure and

implementation thereof, adopted by the Company for ensuring the compliance of the conditions of

corporate governance as stipulated in the said Listing Regulations and DPE guidelines. It is neither

an audit nor an expression of an opinion on the financial statements of the Company.

3. In our opinion and to the best of our information and according to the explanations given to us and

the representations made by the Management, we certify that the Company has complied with the

conditions of Corporate Governance as stipulated under the SEBI (Listing Obligations and

Disclosure Requirements) Regulations, 2015, as amended, for the financial year ended 31st March,

2019.

For C.A Patel & Sanklecha

Chartered Accountants

Firm Regd. No : 015669S

Bharat Raj Sanklecha

Place: Chennai Partner

Date: 29th May, 2019 Membership No. 027539

45


FORM NO. MR-3

Secretarial Audit Report

For The Financial Year Ended 31st March 2019

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

To,The Members,National Plastic Technologies Limited,44, Pantheon Road, Thiru Complex,2nd Floor, Chennai - 600008.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by National Plastic Technologies Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.

Based on our verification of the National Plastic Technologies Limited's books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the company, its officers, agents and authorized representatives during the conduct of secretarial audit and as per the explanations given to us and the representations made by the Management, we hereby report that in our opinion, the Company has during the audit period covering the financial year ended on 31st March, 2019 generally complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records made available to us and maintained by National Plastic Technologies Limited for the financial year ended on 31st March, 2019 according to the applicable provisions of:

i. The Companies Act, 2013 (the Act) and the rules made thereunder;

ii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

iii. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

iv. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act'): -

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

c) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993.

d) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

v. The Payment of Gratuity Act 1972;

46


vi. The Payment of Bonus Act, 1965;

vii. Payment of Wages Act, 1936;

viii. The Employees Provident Funds and Miscellaneous Provisions Act, 1952;

ix. The Employees' State Insurance Act, 1948;

x. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

We have reviewed the systems and mechanisms established by the Company for ensuring compliances under various Acts and based on the information and explanation provided to us by the management and officers of the Company and also on verification of compliance reports taken on record by the Board of Directors of the Company, we report that adequate systems are in place to monitor and ensure compliance of fiscal laws as mentioned above.

We have also examined compliance with the applicable clauses of the following:

i. Secretarial Standards issued by The Institute of Company Secretaries of India have been generally complied.

ii. The Listing Agreements entered into by the Company with stock exchanges;

During the period under review there were no events which required specific compliance of the provisions of

i. the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;

ii. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

iii. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;

iv. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998

v. The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made thereunder;

vi.The Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014;

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except the following Observation.

1. According to section 203 of the Companies Act, 2013, the Company has not appointed Company Secretary and Chief Financial Officer within a period of six months from the date of such vacancy.

We further report that

The Board of Directors of the Company is duly constituted with the proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

47


Adequate notice has been given to all directors to schedule the Board Meetings, agenda and detailed notes on the agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

We further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the period under review, the company has:

1. The Company has appointed Mr. Abishek as Company Secretary of the Company with effect from September 24, 2018.

For BP & AssociatesCompany Secretaries

K.J. Chandra MouliPartner

Place: Chennai M No: 25315Date: 19th July 2019 CP No: 15708

48


“ANNEXURE A”

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

To,

The Members,

National Plastic Technologies Limited,

44, Pantheon Road, Thiru Complex,

2nd Floor, Chennai - 600008.

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on a test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Account of the company

4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards are the responsibility of the management. Our examination was limited to the verification of procedures on a test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

For BP & AssociatesCompany Secretaries

K.J. Chandra MouliPartner

Place: Chennai M No: 25315Date: 19th July 2019 CP No: 15708

49


INDEPENDENT AUDITOR'S REPORT

To the Members of

M/s National Plastic Technologies Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of M/s National Plastic Technologies Limited (“the Company”), which comprise the Balance Sheet as at 31st March, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”). In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2019, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We do not have any key audit matters to be communicated in our report.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Company’s Annual Report, but does not include the standalone financial statements and our auditor's report thereon. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

50


In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Ÿ Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ŸObtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

51


ŸEvaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

ŸConclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

ŸEvaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account with the returns received from the branches not visited by us.

52


d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st March, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:

(i) The Company does not have any pending litigations which would impact its standalone financial positions.

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

(iii) There has been delay in transferring unclaimed dividend of Rs. 234,395/- for financial year 2010-2011, required to be transferred by the company to the Investor Education and Protection Fund on or before 24-Nov-2018. The Company has transferred the said unclaimed dividend on 03-May-2019 to the Investor Education and Protection Fund.

2. As required by the Companies (Auditor's Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.

For C.A Patel & Sanklecha

Chartered AccountantsFirm Regd. No : 015669S

Bharat Raj SanklechaPartner

Place: Chennai

Date: 29th May, 2019 Membership No. 027539

53


ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under 'Report on Other Legal and Regulatory Requirements' section of our report to the members of M/s National Plastic Technologies Limited of even date.)

Report on the Internal Financial Controls over Financial Reporting under clause(i) of Sub-section 3 of Section 143 of the Companies Act, 2013(“the Act”)

We have audited the internal financial controls over financial reporting of M/s National Plastic Technologies Limited (“the Company”) as of 31st March, 2019 in conjunction with our audit of the standalone Ind AS financial statements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing specified under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

54


Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company: and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March,2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For C.A Patel & SanklechaChartered Accountants


Bharat Raj SanklechaPlace: Chennai PartnerDate: 29th May, 2019 Membership No. 027539

55


ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report to the members of M/s National Plastic Technologies Limited of even date.)

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. During the year, the fixed assets of the Company have been physically verified by the management and as informed, no material discrepancies were noticed on such verification. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its assets.

c. The title deeds of the immoveable properties are held in the name of the company.

2. a. The management, at reasonable intervals, has physically verified the inventories during the year.

b. No material discrepancies were noticed during physical verification of inventory.

3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnership or other parties covered in the register maintained under Section 189 of the Companies Act.

4. The Company has complied with the provisions of Section 185 & 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and securities.

5. The Company has not accepted any deposits from public.

6. The Central Government has not prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Companies Act, 2013 in respect of the activities carried on by the company.

7. (a) The company is regular in depositing undisputed statutory dues, including Provident Fund, Employees' State Insurance, income-tax, goods and service tax, customs duty, cess and any other statutory dues to the appropriate authorities.

According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, employees' state insurance, income tax, Goods and Service Tax, customs duty, cess and any other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of income tax, customs duty or Goods and Service Tax as on 31st March, 2019 which have not been deposited on account of any disputes.

8. The Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, governments or dues to debenture holders.

56


57

9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year.

10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

11. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has paid the managerial remuneration in accordance with the requisite approvals mandated by the Provision of Section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, Paragraph 3 (xii) of the Order is not applicable to the Company.

13. According to the information and explanations given to us and based on our examination of the record of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Financial Statements as required by the applicable accounting standards.

14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.

15. According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transaction with directors or persons connected with him. Accordingly, Paragraph 3 (xv) of the Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934..

For C.A Patel & SanklechaChartered Accountants


Bharat Raj SanklechaPlace: Chennai PartnerDate: 29th May, 2019 Membership No. 027539

Balance Sheet as at 31st March, 2019


As at 31st March, 2019

INR INR

Particulars Note No.

ASSETS1 Non-current assets

Property, Plant and Equipment 3A 334,020,710 237,606,212Capital work-in-progress 17,093,417 4,683,355Investment Property - -Other Intangible Assets 3B 435,640 365,064Financial Assets

- Investments 4 1,517 1,504- Loans - -

- Others 5 226,337 2,469,015

Other non-current assets 6 3,412,796

3,451,605

Total non-current assets 355,190,417

248,576,755

2 Current assetsInventories 7 128,459,052

103,864,234

Financial assets(i) Investments - -

(ii) Trade receivables 8 149,742,671

142,326,152

(iii) Cash & cash equivalents 9 6,450,914

204,513

(iv) Bank balances other than (iii) above 10 2,765,048

2,569,685

(v) Loans 11 27,131 250,000

(vi) Others - -

Current tax assets (net) 12 17,349,978

13,342,167

Other current assets 13 47,230,834

81,039,922

Total current assets 352,025,628

343,596,673

TOTAL ASSETS 707,216,045

592,173,428

EQUITY AND LIABILITIES3 Equity

Equity Share Capital 14

Other equity 15Total equity

4 Non-current liabilitiesFinancial liabilities

(i) Borrowings 16

(ii) Other financial liabilities 17

Deferred tax liability (net) 12

Provisions 18

Other non-current liabilities

Total non-current liabilities

60,783,300144,571,375205,354,675

56,263,36632,270,00035,488,3232,742,363

-126,764,052

60,783,300161,733,928222,517,228

98,149,515

8,270,000

33,557,800

3,590,843

-143,568,158

58

ASSETS1 Non-current assets

Property, Plant and Equipment 3A 334,020,710 237,606,212 Capital work-in-progress 17,093,417 4,683,355 Investment Property - - Other Intangible Assets 3B 435,640 365,064 Financial Assets

- Investments 4 1,517 1,504 - Loans - - - Others 5 226,337 2,469,015

Other non-current assets 6 3,412,796 3,451,605 Total non-current assets 355,190,417 248,576,755

2 Current assetsInventories 7 128,459,052 103,864,234 Financial assets

(i) Investments - - (ii) Trade receivables 8 149,742,671 142,326,152 (iii) Cash & cash equivalents 9 6,450,914 204,513 (iv) Bank balances other than (iii) above 10 2,765,048 2,569,685 (v) Loans 11 27,131 250,000 (vi) Others - -

Current tax assets (net) 12 17,349,978 13,342,167 Other current assets 13 47,230,834 81,039,922

Total current assets 352,025,628 343,596,673

TOTAL ASSETS 707,216,045 592,173,428

EQUITY AND LIABILITIES3 Equity

Equity Share Capital 14 60,783,300 60,783,300 Other equity 15 161,733,928 144,571,375

Total equity 222,517,228 205,354,675

4 Non-current liabilitiesFinancial liabilities

(i) Borrowings 16 98,149,515 56,263,366 (ii) Other financial liabilities 17 8,270,000 32,270,000

Deferred tax liability (net) 12 33,557,800 35,488,323 Provisions 18 3,590,843 2,742,363 Other non-current liabilities - -

Total non-current liabilities 143,568,158 126,764,052

5 Current liabilitiesFinancial liabilities

(i) Borrowings 19 262,935,503 178,585,724 (ii) Trade payables 20 57,498,186 55,385,557 (iii) Other financial liabilities 21 13,513,563 24,498,487

Provisions 22 67,007 79,087 Other current liabilities 23 7,116,400 1,505,846

Total current liabilities 341,130,659 260,054,701

TOTAL EQUITY AND LIABILITIES 707,216,045 592,173,428

- - 2

In terms of our report of even date attached.

For C A PATEL & SANKLECHA For and on behalf of the Board of Directors Chartered Accountants Firm Registration No : 015669S

BHARAT RAJ SANKLECHA Sudershan Parakh Alok ParakhPartner Managing Director Joint Managing DirectorMembership No : 027539 DIN : 01161124 DIN : 01417398

Place : ChennaiDate : 29th May 2019 S. Abishek Manikandan Ramasamy

Company Secretary Chief Financial Officer

Significant accounting policies



Balance Sheet as at 31st March, 2019

59



INR INR


In terms of our report of even date attached.

262,935,50357,498,18613,513,563

67,007

7,116,400

341,130,659

707,216,045

-

178,585,72455,385,55724,498,487

79,0871,505,846

260,054,701

592,173,428

-

1920212223

2

5 Current liabilitiesFinancial liabilities

(i) Borrowings(ii) Trade payables(iii) Other financial liabilities

ProvisionsOther current liabilities

Total current liabilities

TOTAL EQUITY AND LIABILITIES

Significant accounting policies

The accompanying notes are an integral part of the financial statements

For C A PATEL & SANKLECHA For and on behalf of the Board of Directors Chartered AccountantsFirm Registration No : 015669S


Place : Chennai S. Abishek Manikandan RamasamyDate : 29th May 2019 Company Secretary Chief Financial Officer

Year ended

31st March, 2019

Year ended

31st March, 2018

INR INR


Statement of Profit and Loss for the year ended 31st March, 2019


60

I IncomeRevenue from operation 24 777,562,246 673,102,025Other income 25 5,755,938

9,057,928Total income 783,318,184

682,159,953

II ExpensesCost of material consumed 26.a 573,644,588

462,094,335

Changes in Inventories of finished goods, stock -in-trade and

work-in-progess

26.b (12,366,519)

1,074,112

Excise Duty on Sale of Goods -

19,953,096

Employee benefit expenses 27 59,767,593

50,643,567

Finance cost 28 31,771,891

21,852,159

Depreciation and amortisation 3 18,366,472

15,328,297

Other expenses 29 96,459,130

97,981,003

Total expenses 767,643,155

668,926,569

III Profit / (Loss) before exceptional items and tax 15,675,029

13,233,384

IV Exceptional items -

-

V Profit before tax (III-IV) 15,675,029

13,233,384

VI Tax expense: - Current tax -

2,150,000

- Deferred tax 12 (1,930,275)

2,615,410

(1,930,275)

4,765,410

VII Profit / (Loss) for the year (V - VI) 17,605,304

8,467,974

VIII Other Comprehensive Income(A) Items that will be reclassified to profit or loss --

(B) Items that will not be reclassified to profit or loss Net gain/(loss) on equity instruments through Other Comprehensive Income (1,287) 26,334 Re-measurement of net defined benefit plans (441,712) (1,990,062)

Income tax effect on above 248 615,832

Statement of Profit and Loss for the year ended 31st March, 2019


61

Year ended

31st March, 2019

Year ended

31st March, 2018

INR INR

Other Comprehensive Income for the year

IX Total Comprehensive Income (VII+VIII)

Earnings per share

- Basic & Diluted


Significant accounting policies 2

The accompanying notes are an integral part of the financial statements

(442,751) (1,347,896)

17,162,553 7,120,078

2.82 1.17

In terms of our report attached.




Particulars

INR INRINR INRA. Cash flow from operating activities

Net Profit / (Loss) before extraordinary items and tax 15,675,029 13,233,384

Adjustments for:

Depreciation and amortisation 18,366,472 15,328,297

Assets discarded - 1,661

Profit on sale of assets (372,873) -

Interest paid 26,770,537 17,896,033

Interest income (1,501,402) (1,316,023)

43,262,734 31,909,968

Operating profit / (loss) before working capital changes 58,937,763 45,143,352

Movement in working capital:

Adjustments for (increase) / decrease in operating assets:

Inventories (24,594,818) (11,025,545)

Trade receivables (7,416,519) 42,191,283

Other receivables 36,118,081 (38,952,635)

Trade payables 2,112,629 (18,909,688)

Other liabilities (28,979,683) 5,472,406

Cash flow from extraordinary items (22,760,310) (21,224,179)

Cash generated from operations 36,177,453 23,919,173

Net income tax (paid) / refunds (4,007,811) (10,453,050)

Net cash flow from operating activities (A) 32,169,642 13,466,123

B. Cash flow from investing activities

Payment for Property, plant and equipments,including capital advances (Net)

(131,111,175) (47,321,802)

Proceeds from disposal of property, plant and equipments 4,411,441 -

-

Purchase of investments (12,400) -

Proceeds from sale of investments 11,100 26,600

Interest received 1,501,402 1,316,023

Net cash flow used in investing activities (B) (125,388,632) (45,979,179)

C. Cash flow from financing activities

Interest paid (26,770,537) (17,896,033)

Increase in borrowings 126,235,928 50,405,688

Dividends & Tax paid - -

Net cash flow used in financing activities (C) 99,465,391 32,509,655

Net increase / (decrease) in Cash and cash equivalents (A+B+C) 6,246,401 (3,401)

Cash and cash equivalents at the beginning of the year 204,513 207,914

Cash and cash equivalents at the end of the year 6,450,914 204,513

Components of Cash and Cash Equivalents

(a) Cash on hand 98,365 53,458

(b) Cheques, drafts on hand --

(c) Balances with banks

(i) In current accounts 187,775

205

6,164,569

151,055

6,450,914 204,513

For the year ended 31st March, 2019


Statement of Cash Flows for the year ended 31st March, 2019


62

Other Intangible Assets (189,000)

(ii) In cash credit account

(iii) In Fixed Deposits

See accompanying notes forming part of the financial statements


For C A PATEL & SANKLECHA For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No : 015669SSudershan Parakh Alok Parakh

Managing Director Joint Managing Director

BHARAT RAJ SANKLECHA DIN : 01161124 DIN : 01417398

Partner

Membership No : 027539

Place : Chennai

Date : 29th May, 2018

Statement of Cash Flows for the year ended 31st March, 2019


63

S. Abishek Manikandan Ramasamy

Company Secretary Chief Financial Officer

STATEMENT OF CHANGES IN EQUITY (SOCIE) (INR)


64

Statement of Changes in Equity (SOCIE)

Note (a) : Equity Share Capital

As at31st March 2019 31st March 2018

60,783,300 60,783,300 - -

60,783,300 60,783,300

Note (b) : Other EquityItems of OCI

Securities Premium

ReserveRetained earnings

Equity Instruments

through OCI

Balance at 01st April, 2017

Profit for the year

Other comprehensive income for the year net of income tax

Other comprehensive income arising from remeasurementof defined benefit obligation net of income taxTotal comprehensive income for the year

Cash dividendsDividend Distribution Tax (DDT)

Balance at 31st March, 2018Balance at the beginning of the reporting period

Profit for the yearOther comprehensive income for the year net of income taxOther comprehensive income arising from remeasurementof defined benefit obligation net of income taxTotal comprehensive income for the year

Cash dividendsDividend Distribution Tax (DDT)

Balance at 31st March, 2019


Particulars

Balance at the beginning of the reporting periodChanges in equity share capital during the yearBalance at the end of the reporting period

Particulars

Reserves & Surplus

Total Equity

1,640,000 136,369,403 (558,106) 137,451,297 - 8,467,974 - 8,467,974 - - (1,347,896)

(1,347,896)

- - -

- - 8,467,974 (1,347,896) 7,120,078

- - -

-

- - -

-

- - - -

1,640,000 144,837,377 (1,906,002) 144,571,375 1,640,000 144,837,377 (1,906,002) 144,571,375

- 17,605,304 -

17,605,304

- - (442,751)

(442,751)

- - -

-

- 17,605,304 (442,751) 17,162,553

- - -

-

- - -

-

- - - - 1,640,000 162,442,681 (2,348,753) 161,733,928





Notes to the financial statements

1. Corporate informationNational Plastic Technologies Limited (L25209TN1989PLC017413), a public limited company domiciled in India with its registered office located at 44, Pantheon Road, Thiru Complex, 2nd Floor, Egmore, Chennai - 600 008. The Company is predominantly into manufacture of products to automotive industry and consumer durable industry and is already a major supplier of Injection Moulded Plastic Products. At present the company has 4 production plants situated in the states of Tamil Nadu (Guindy, Irrungattukottai (SIPCOT)), Himachal Pradesh (Sirmour) and in the Union Territory of Puducherry.

The Company is listed on the Bombay Stock Exchange (BSE).The financial statements were approved for issue by the Board of Directors on 29th May 2019.

2. Basis of preparation of financial statements2.1 Basis of preparation and compliance with Ind ASThe Financial Statements of the Company as at and for the year ended 31st March 2019 have been prepared in accordance with Indian Accounting Standards ('Ind AS') notified under Section 133 of the Companies Act, 2013 ('Act"), and the Companies (Indian Accounting Standards) Rules issued from time to time and relevant provisions of the Companies Act, 2013 (collectively called as Ind AS).

2.2 Basis of measurementThe financial statements have been prepared on a going concern basis, using historical cost convention and on an accrual method of accounting, except for financial assets, financial liabilities and defined benefit plans which have been measured at fair value, as required by relevant Ind AS.

2.3 Current and non-current classificationThe Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.An asset is classified as current if it satisfies any of the following criteria: a) It is expected to be realised or intended to be sold in the Company’s normal operating cycle. b) It is held primarily for the purpose of trading, c) It is expected to be realised within twelve months after the reporting period, or d) It is a cash or cash equivalent unless restricted from being exchanged or used to settle a liability for atleast twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current if it satisfies any of the following criteria: a) it is expected to be settled in the Company’s normal operating cycle, b) it is held primarily for the purpose of trading, c) it is due to be settled within twelve months after the reporting period d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as noncurrent. Current liabilities include current portion of noncurrent financial liabilities

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

2.4 Use of estimates and assumptionsThe preparation of the company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

65


66

2.5 Property, plant and equipmentProperty, plant and equipments are stated at historical cost less accumulated depreciation. Cost comprises of purchase price and other attributable costs , if any , in bringing the assets to its working condition for its intended use.

Depreciation(i) Depreciation on Property, plant and equipment is provided for on Straight Line method in the manner prescribed in Part C of Schedule II of the Companies Act, 2013 except for Plant and Machinery and Electrical Fittings of Irungattukottai and Guindy plant.

Based on engineer's certification, the useful life of Plant & Machinery and Electrical fittings of Irungattukottai and Guindy plants have been considered as follows : (a) Plant & Machinery - 25 Years (b) Electrical Fittings - 15 Years

(ii) Depreciation is provided after reckoning the maximum residual value @ 5% of the original cost of the asset.(iii) In respect of addition of assets during the year, depreciation has been provided on Pro-rata basis.

2.6 Intangible Assets:Separately purchased intangible assets are initially measured at cost. Subsequently, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

AmortisationThe useful life of Intangible assets are assessed and amortised on the straight line basis over the period of their expected useful life.The computer software are amortised over the period of 6 years on straight line basis.

InventoriesInventories are valued as under :(I) Raw Materials, Stores & Consumables* - at lower of cost or net realisable value.(ii) Work In progress** - at cost.(iii) Finished Goods*** - at lower of cost or net realizable value.

Costs are arrived at by using FIFO method and it includes the followings :* Cost of raw materials includes purchase price plus transportation charges, insurance charges, handling charges and other direct attributable costs to bring the material to the present location as on the reporting date.** Cost of Work in progress includes landed cost of raw material plus proportionate labour and overheads on absorption costing basis.*** Cost of finished goods includes landed cost of raw material plus proportionate labour and overheads on absorption costing basis.

Revenue recognitionSale of goodsRevenue is recognised at the fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as sales tax, value added tax and Goods & Service Tax except excise duty.


67

OthersAll other incomes are recognised when no significant uncertainty as to its subsequent realisation exists.

2.8 Employee benefits(I) Short-term employee benefitsShort term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

(ii) Post Employment benefits(a) Defined contribution plansA defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Contributions paid/payable for Provident Fund of eligible employees is recognized in the statement of Profit and Loss each year.

(b) Defined benefit plansA defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

Post employment benefits are recognized as an expense in the statement of profit and loss for the year in which the employee has rendered services. The calculation of defined benefit obligation is performed by a qualified actuary using the projected unit credit method.

2.9 Financial instrumentsFinancial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company commits to purchase or sell the asset.

(A) Financial AssetsThe Company determines the classification of its financial assets at initial recognition. The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.The financial assets are classified in the following measurement categories:a) Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), andb) Those to be measured at amortised cost.For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss as incurred. Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments.


68

(I) Amortised CostThe Company classifies its financial assets as at amortised cost only if both of the following criteria are met:a) The asset is held within a business model with the objective of collecting the contractual cash flows, andb) The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding.Financial assets at amortised cost include loans receivable, trade and other receivables, and other financial assets that are held with the objective of collecting contractual cash flows. After initial measurement at fair value, the financial assets are measured at amortised cost using the effective interest rate (EIR) method, less impairment.Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit or loss. The losses arising from impairment are recognised in the Statement of Profit or Loss in other income.

(ii) Fair value through other comprehensive incomeFinancial assets that are held for collection of contractual cash flows and for selling the financial assets, where the asset's cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment gains or losses, and interest revenue which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in other income using the effective interest rate method.

(iii) Financial assets at fair value through profit or lossThe Company classifies the following financial assets at fair value through profit or loss:a) Debt investments that do not qualify for measurement at amortised cost;b) Debt investments that do not qualify for measurement at fair value through other comprehensive income; andc) Debt investments that have been designated at fair value through profit or loss.

Derecognition of financial assetsThe Company derecognises a financial asset when the contractual rights to the cash flows from the assets expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

(B) Financial LiabilitiesThe Company determines the classification of its financial liabilities at initial recognition.

ClassificationThe Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Initial recognition and measurementFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss. Loans and borrowings, payables are subsequently measured at amortised cost.


69

Derecognition of financial liabilitiesA financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

(C) Equity investmentsAll equity investments in scope of Ind AS 109 are measured at fair value. For equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The classification is made on initial recognition and is irrevocable.If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Profit and Loss.

2.10 Cash and cash equivalentsCash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

2.11 Deferred Revenue ExpenditurePreliminary expenses, relating to public issue expenses, of amalgamating company has not been written off.

2.12 TaxationProvision for taxation comprises of the current tax provision, and the net change in the deferred tax asset or liability during the year. Provision for deferred tax is made on the timing differences arising between the taxable income and the accounting income computed using the tax rates and the laws that have been enacted or substantively enacted at the reporting date.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

2.13 Segment accountingThe company operates in a single segment, i,e Injection Moulded Plastic Products and hence does not call for segmentwise disclosure of assets, liabilities, revenues or expenses as prescribed under Accounting Standard 17 on "Segment Reporting", issued by ICAI.

2.14 Provisions, Contingent Liabilities, Contingent Assets and CommitmentsProvisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.


70

Contingent liability is disclosed in the case of:A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;A present obligation arising from the past events, when no reliable estimate is possible;A possible obligation arising from the past events, unless the probability of outflow of resources is remote.Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

2.15 Cash flow statementCash flow are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals of accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and finance activities of the Company are segregated.

2.16 Earnings per shareBasic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.


Notes to Financial statements

Note 3 : Property, plant and equipment

A. Tangible Assets

As atAdditions Deletions

As at Upto For the Deletions

As at01-04-2018 31-03-2019 01-04-2018 Year 31-03-2019

As at31-03-2019

As at31-03-2018

(a) Land (Freehold) 10,342,315 - - 10,342,315 - - - - 10,342,315 10,342,315

(b) Land (Leasehold) - - - - - - - - - -

(c) Buildings

(d) Plant and Equipment

(e) Furniture & Fixtures

(f) Moulds

(g) Vehicles - Owned

- Given under leases -

-

-

-

-

-

-

-

-

-

(h) Electrical Fittings

(i) Computer & Accessories

(j) Cranes

(k) Office equipment

Total

B. Intangible Assets

As atAdditions As at Upto For the As at As at As at

01-04-2018 31-03-2019 01-04-2018 Year 31-03-2019 31-03-2019 31-03-2018

Copyrights, patents and other intellectualproperty rights, servicesand operating rights

1,317,012

1,317,012

189,000

189,000

-

-

1,506,012

1,506,012

951,948

951,948

118,424

118,424

-

-

1,070,372

1,070,372

435,640

435,640

365,064

365,064Total

Gross Block Depreciation Net Block

Gross Block Depreciation Net Block Disposals/Discarded

Disposals/Discarded

71

73,861,312 - - 73,861,312 7,768,508 3,678,294 - 11,446,802 62,414,510 66,092,804

154,901,200 107,788,897 5,110,942 257,579,155 13,883,667 11,265,270 1,178,374 23,970,563 233,608,592 141,017,533

1,402,146 2,218,925 - 3,621,071 132,698 249,992 - 382,690 3,238,381 1,269,448

2,585,118 1,501,680 - 4,086,798 761,998 428,315 - 1,190,313 2,896,485 1,823,120

3,506,200 652,293 216,826 3,941,667 900,174 519,595 110,827 1,308,942 2,632,725 2,606,026

- - 16,133,056 1,421,787 - 17,554,843 3,777,186 1,370,072 5,147,258 12,407,585 12,355,870

1,734,985 338,377 - 2,073,362 967,101 339,956 - 1,307,057 766,305 767,884

1,303,895

4,465,224

-

5,769,119

283,273

282,683

-

565,956

5,203,163

1,020,622

430,297 313,930 - 744,227 119,707 113,871 - 233,578 510,649 310,590

266,200,524

118,701,113

5,327,768

379,573,869

28,594,312

18,248,048

1,289,201

45,553,159

334,020,710

237,606,212



Note 3 : Property, plant and equipment

A. Tangible Assets

As atAdditions

Disposals /Discarded

Disposals /Discarded

As at Upto For the As at01-04-2017 31-03-2018 01-04-2017 Year 31-03-2018

As at31-03-2018

As at31-03-2017

(a) Land (Freehold) 10,342,315 - - 10,342,315 - - - - 10,342,315 10,342,315

(b) Land (Leasehold) - - - - - - - - - -

(c) Buildings

(d) Plant and Equipment

(e) Furniture & Fixtures

(f) Moulds

(g) Vehicles - Owned

- Given under leases

(h) Electrical Fittings

(i) Computer & Accessories

(j) Cranes

(k) Office equipment

Total -

B. Intangible Assets

As atAdditions As at Upto For the As at As at As at

01-04-2017 31-03-2018 01-04-2017 Year 31-03-2018 31-03-2018 31-03-2017

Copyrights, patents and other intellectualproperty rights, servicesand operating rights

1,317,012

1,317,012

-

-

-

-

1,317,012

1,317,012

201,006

201,006

750,942

750,942

-

-

951,948

951,948

365,064

365,064

566,070

566,070Total

Gross Block Depreciation Net Block

Gross Block Depreciation Net Block Disposals/Discarded

Disposals/Discarded

72

73,861,312

-

-

73,861,312

3,870,889

3,897,619

-

7,768,508

66,092,804 69,990,423

115,095,917

39,805,283

-

154,901,200

6,470,842

7,412,825

-

13,883,667

141,017,533 108,625,075

252,902

1,149,244

-

1,402,146

38,196

94,502

-

132,698

1,269,448 214,706

1,936,118

649,000

-

2,585,118

367,523

394,475

-

761,998

1,823,120 1,568,595

3,015,049

491,151

-

3,506,200

418,098

482,076

-

900,174

2,606,026 2,596,951

-

-

- -

-

-

-

-

- -

15,874,673 258,383 - 16,133,056 1,892,069 1,885,117 - 3,777,186 12,355,870 13,982,604

1,537,123 199,523 1,661 1,734,985 218,238 748,863 - 967,101 767,884 1,318,885

1,303,895

-

-

1,303,895

141,636

141,637

-

283,273

1,020,622 1,162,259

344,434

85,863

-

430,297

49,530

70,177

-

119,707

310,590 294,904

223,563,738 42,638,447

1,661

266,200,524

13,467,021

15,127,291

28,594,312

237,606,212 210,096,717


Category-wise other investments-as per Ind AS 109 classification

As at 31st

March 2019

As at 31st

March 2018

Financial assets carried at fair value through profit or loss (FVTPL) - -

Financial assets carried at amortised cost - -

Financial assets measured at FVTOCI 1,517 1,504

1,517 1,504

Particulars

Total Investments

Note 4 : Non-current investments

Particulars Face Value Quantity31.03.2019

As at 31st

March 2019

As at 31st

March 2018

Unquoted equity shares measured

at fair value

Bansal Windmills Private Limited 100 1,517

1,504

1,517

1504

1504

1504

1,517

Total Investments 1,517

Aggregate book value of quoted investments -

Aggregate market value of quoted investments - Aggregate carrying value of unquoted investments 1,517

73

Quantity31.03.2018

-

- 1,504


74


Note 5 : Other non-current financial assets

Particulars As at 31st March

2019

As at 31st March

2018

Unsecured, considered good

In Deposit accounts (original maturity more than 12 months)

Total

Note 6 : Other non-current assets


2019

As at 31st March

2018


Other deposits

Total

Note 7 : Inventories


2019

As at 31st March

2018

Stock In Trade

Raw material

Packing Material

Finished goods

Fastners & Components

Work - in - Progress

Stores

Master batch & Pigments

Total

Note 8 : Trade receivables


2019

As at 31st March

2018

Secured, considered good

-

-


Unsecured, considered doubtful -

-

Less: Allowance for doubtful debts -

-

Total

Note 9 : Cash and cash equivalents


2019

As at 31st March

2018

Cash and cash equivalents

Cash on hand 98,365 53,458

Balances with banks

- In Cash Credit accounts

- In current accounts 187,775

205

6,164,569

151,055

Other Bank Balances

Balances held in Fixed Deposit Account-

-

Total 6,450,914 204,513

226,337 2,469,015

226,337 2,469,015

3,412,796

3,451,605

3,412,796 3,451,605

23,692,412 16,231,335

4,493,446 4,162,051

52,969,205

44,526,454

10,624,415

8,085,221

30,291,283 26,367,515

240,245 237,484 6,148,046

4,254,174

128,459,052 103,864,234

149,742,671 142,326,152

149,742,671 142,326,152

149,742,671 142,326,152

(Maturing within 3 months)


75


Note 10 : Other Bank balances


2019

As at 31st March

2018

In Unclaimed dividend account 234,545

234,345

In Deposit accounts (original maturity more than three months) 2,530,503

2,335,340

Total 2,765,048

2,569,685

Note 11 : Loans


2019

As at 31st March

2018 Unsecured, considered good

Advances to employees 27,131

250,000

Total 27,131

250,000

Note 12 :

A. Income tax asset (net)


2019

As at 31st March

2018

Advance payment of Income Tax (net) 17,349,978

13,342,167

Total 17,349,978

13,342,167

B Deferred tax assets (net)


2019

As at 31st March

2018

(a) Statement of Profit & loss

Profit & loss section

Current income tax - 2,150,000 Deferred tax relating to origination & reversal of temporary

differences (1,930,275) 2,615,410

Deferred tax relating to Ind AS adjustments -

-

Income tax expense reported in the statement of profit or loss (1,930,275)

4,765,410

(b) Other comprehensive income section

On Unrealised (gain)/loss on FVTOCI equity securities (248)

(615,832)

On Net loss/(gain) on remeasurements of defined benefit plans -

-

Income tax charged to OCI (248)

(615,832)

(c) Reconciliation of tax expense and the accounting profit

multiplied by India’s domestic tax rate for the year ended

Accounting profit before income tax 15,675,029

13,233,384

Statutory income tax rate 0.00% 19.055%

Tax at statutory income tax rate -

2,521,621

Tax effects of :

Admissible deductions -

(371,621)

Deferred tax on other items (1,930,275)

2,615,410

Total tax effect (1,930,275)

2,243,789

Income tax expense reported in statement of Profit & loss (A+B) (1,930,275)

4,765,410

(A)

(B)


76

(c) Deferred tax relates to the following:

As at 31st March

2019

As at 31st March

2018

Deferred tax assets

Gratuity allowable on payment basis (951,041)

(880,292)

Deferred tax liability

Property, plant and equipment 37,720,537

36,396,938

Deferred tax liability

Fair valuation of financial instruments (248)

(28,323)

Total 33,557,800

35,488,323

Particulars

As at 31st March

2019

As at 31st March

2018

Property, plant and equipment 1,930,275

(2,615,410)

Total 1,930,275

(2,615,410)

Particulars

As at 31st March

2019

As at 31st March

2018

Fair valuation of financial instruments 248

615,832

Total 248

615,832

(d) Reconciliation of deferred tax liabilities (net):


2019

As at 31st March

2018

Balance at the beginning of the reporting period 35,488,323

33,488,745

Tax (income)/expense during the period recognised in Profit & Loss

(DTA) (1,930,275)

2,615,410

Tax income/(expense) during the period recognised in OCI (DTL) (248)

(615,832)

Total 33,557,800

35,488,323

Note 13 : Other current assets


2019

As at 31st March

2018


Balances with govt. agencies:

- Excise/Service Tax 506,094

448,989

- Goods and service tax 3,561,439

2,731,331

Advance to Supplier 25,567,950

59,662,736

Others 17,595,351

18,196,866

Total 47,230,834

81,039,922

Particulars

Balance sheet

Recognised in Profit and Loss

Recognised in OCI

Losses allowable under income tax Act, 1961 (3,211,448) -

77


Note 14 : Equity Share capital

a) Rights, preferences and restrictions attached to shares

Equity shares

b) Shareholders holding more than 5% of equity share capital

Particulars

Number of

shares % holding

Number of

shares % holding

Sudershan Parakh

National Polyplast (India) Pvt Limited

Arihant Parakh

Alok Parakh

Manju Parakh

As at 31st March 2019 As at 31st March 2018

The Company has one class of equity shares having a par value of Rs 10/- each. Each shareholder is eligible for

one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining

assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Particulars

Number of

shares Amount

Number of

shares Amount

Authorised

Equity Shares of Rs 10/- each with

voting rights

Redeemable preference shares of

Rs 100/- each

Issued

Equity Shares of Rs 10/- each with

voting rights Shares outstanding at beginning of

the year

Shares outstanding at the end of

the year

Subscribed and fully paid up Equity Shares of Rs 10/- each with

voting rights Shares outstanding at beginning of

the year Shares outstanding at the end of

the year

Total

As at 31st March 2019 As at 31st March 2018

7,000,000 70,000,000 7,000,000

300,000 30,000,000 300,000

6,078,330

60,783,300 6,078,330

6,078,330 60,783,300 6,078,330

6,078,330 60,783,300 6,078,330

6,078,330 60,783,300 6,078,330

6,078,330 60,783,300 6,078,330

70,000,000

30,000,000

60,783,300

60,783,300

60,783,300

60,783,300

60,783,300

1,518,505 24.98% 1,563,215

600,000 9.87% 600,000

652,302

10.73% 621,713 529,986 8.72% 482,380

358,385 5.90% 334,735

25.72%

9.87%

10.23%

7.94%

5.51%


78

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13

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7,9

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8


79

Non-current liabilities

Note 16 : Financial Liabilities - Borrowings


2019

As at 31st March

2018

Secured

From Banks 84,562,501

46,099,914

(Secured by Plant and equipments)

From Non Banking Finance Companies

- TATA Capital Financial Service Limited 13,587,014

10,163,452

(Secured by Plant and equipments)

Total 98,149,515

56,263,366

Note 17 : Other financial liabilities


2019

As at 31st March

2018

Security Deposit from customers 8,270,000

32,270,000

Total 8,270,000

32,270,000

Note 18 : Long term provisions


2019

As at 31st March

2018

Provision for employee benefits

Provision for Gratuity (Refer Note 31) 3,590,843

2,742,363

Total 3,590,843

2,742,363

Note 19 : Financial Liabilities- borrowings


2019

As at 31st March

2018

Secured

(i) DBS Bank Ltd

(a) Cash credit - 128,024,732 Was secured by exclusive charge on entire current assets & fixed assets of the

Company except current assets & fixed assets of Unit at Himachal Pradesh

and Collateral security of all immovable properties except propety at Guindy.

(b) Bills Payable -

8,107,501

(ii) YES Bank Ltd

(a) Cash credit facility 63,913,999

30,640,274

(Secured by exclusive charge on current assets of unit at Himachal Pradesh &

Pondicherry & collateral security of Immovable property at Guindy)

(b) Bills Payable 15,557,654

-

(c) Buyer's Credit 8,501,536

-

(d) Current Maturities of Long-term Debt 19,756,146 8,976,417

(Term Loans Payable within one year)


80

(iii) Axis Bank Ltd

(a) Cash credit facility 147,998,811

-

(Secured by exclusive charge on current assets of unit at Irrungattukottai &

collateral security of Immovable property at ) Irrungattukottai

(b) Current Maturities of Long-term Debt 1,947,157

-


(iv) TATA Capital Financial Services Limited

Current Maturities of Long-term Debt 5,260,200 2,836,800


Total 262,935,503 178,585,724



Note 20 : Current financial liabilities- trade payables


2019 As at 31st March

2018


Due to Micro, Small and Medium Enterprises (MSMED)* 439,437

357,661

Others 57,058,749

55,027,896

Total 57,498,186

55,385,557



2018

(i) Principal amount remaining unpaid to any supplier as at

the end of the accounting year 439,437

357,661

(ii) Interest due thereon remaining unpaid to any supplier as

at the end of the accounting year -

-

(iii) The amount of interest paid along with the amounts of the

payment made to the supplier beyond the appointed day

-

-

(iv) The amount of interest due and payable for the year -

-

(v) The amount of interest accrued and remaining unpaid at

the end of the accounting year - -

(vi) The amount of further interest due and payable even in the

succeeding year, until such date when the interest dues as

above are actually paid

- -

Note 21 : Other current financial liabilities



2018

Unclaimed dividend 234,545

234,345

Others 13,279,018 24,264,142

Total 13,513,563

24,498,487

Note 22 : Short term provisions



2018

Provision for employee benefits

Provision for Gratuity (Refer Note 31) 67,007 79,087

Total 67,007 79,087

*Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of

information collected by the Management. This has been relied upon by the auditors.

81


82

Note 23 : Other current liabilities



2018

Statutory dues 7,116,400 1,505,846

Total 7,116,400 1,505,846

Note 25 : Other income

Particulars

Year ended 31st March, 2019


INR INR

Interest Income on FDR/NSC Interest on Security Deposit with TNEB

Interest on Income Tax Refund

Insurance claims receipts

Miscellaneous/Other Income

Profit on sale of assets(Net)

Forex gain(net) Lease Rent receipts Total

Note 24 : Revenue from operation



INR INR

Revenue from operation

Sale of products

Job Work Receipts

770,324,764

670,026,386

7,237,482 3,075,639

Total 777,562,246 673,102,025

Particulars

552,025

763,998

-

18,995

270,472

-

124,254

7,328,184

9,057,928

479,399

697,373

324,630

19,400

266,048

372,873

102,188

3,494,027

5,755,938


83

Note 26.b Changes in inventories of finished goods, work-in-progress and stock-in-trade

Inventories at the end of the year:

Work-in-Progress

Finished goods

Inventories at the beginning of the year:

Work-in-Progress

Finished goods

Net (increase) / decrease

Particulars

Note 26.a Cost of materials consumed

(Plastic Granules, Pigments & Fasteners)

Opening stock

Add : Purchases

Less : Closing Stock

Cost of material consumed

Particulars

For the year ended

31st March, 2019

For the year ended

31st March, 2018 INR INR



INR INR

28,570,730

16,789,156

585,538,731 473,875,909

40,464,873 28,570,730

573,644,588 462,094,335

30,291,283 26,367,515

52,969,205 44,526,454

83,260,488

70,893,969

26,367,515

26,841,498

44,526,454

45,126,583

70,893,969

71,968,081

(12,366,519)

1,074,112


614,109,461 490,665,065

84

Note 27 : Employee benefit expenses



INR INR

(a) Salaries, wages and bonus

(i) Remuneration to Directors

(ii) Salaries and Bonus to Staff

(iii) Wages to workers

(b) Contribution to provident and other funds

Professional tax

Contribution to PF,ESI & Other funds

Incentive/ Ex-gratia/Gratuity

(c) Staff Welfare

Total

Note 28 : Finance cost



INR INR

(a) Bank Charges

(b) Bill Discount Charges

(c) Interest on :

Term Loan

Working Capital / Cash credit

Unsecured Loans

Others

(d) Loan Processing Charges

Total

Particulars

Particulars

900,000 1,275,000

25,978,550

24,658,896

27,560,081 19,628,383

19,538 14,040

3,762,895 3,535,955

884,729 662,642

661,800

868,651

59,767,593 50,643,567

1,695,123 1,133,944

2,479,221

1,548,235

9,306,834 5,477,362

16,885,415 10,861,704

213,699 1,498,147

364,589 58,820

827,010 1,273,947

31,771,891 21,852,159


85

Note 29 : Other expenses

A) Manufacturing Expenses

Electricity Charges

Packing Material Consumed

Stores Consumed

Repairs & Maintenance - P&M/Electricals

Repairs & Maintenance - Buildings

Repairs & Maintenance - Mould

Casual Labour Charges

Processing Charges

Water Charges

Sub Total (A)

B) Selling & Distribution Expenses

Sales Promotion/ Advertisement

Bad Debts Written off

Rebate & Discount

Freight & Forwarding

Loading and Unloading Charges

Sub Total (B)

C) Administrative and Other Expenses

Particulars

Particulars

Particulars

Year ended 31st

March, 2019

Year ended 31st

March, 2018

INR INR

Year ended 31st

March, 2019

Year ended 31st

March, 2018

INR INR

Year ended 31st

March, 2019

Year ended 31st

March, 2018

INR INR

39,630,455 37,336,367

7,680,363 7,894,434

1,523,561 2,582,570

2,922,084 5,639,242

1,050,974 221,292

284,752 283,439

10,749,025 12,101,020

8,407,335

8,001,184 315,624 179,494

72,564,173 74,239,041

53,493 267,902

-

-

4,324,660 1,064,865

6,139,341 9,051,835 156,504 54,640

10,673,998 10,439,241

Audit Fee

Assets Discarded

Conveyance Expenses

Donation

Factory Expenses / Testing Charges

Hire Charges

House Keeping Expenses

Insurance Charges

Lease Rent Payments

Licence Fees

300,000 200,000

- 1,661

207,074 400,610

700 -

393,401 439,348

199,912 194,362

253,081

515,930 756,676 765,461

38,809 38,809

120,612 21,887


86

Sub Total (C)

Total (A+B+C)

Notes : Payments to Auditors, excluding service tax

Payments to the auditors

' - For Statutory Audit

' - For Tax Audit

' - For Taxation Matters

Total

Particulars

Year ended 31st

March, 2019

Year ended 31st

March, 2018

INR INR

250,000 150,000

50,000 50,000

- -

300,000 200,000

Listing/Filing Fees

Membership Fees & Subscriptions

Office Expenses

Pooja Expenses

Postage & courier Charges

Printing & Stationery

Professional/Consultancy Charges

Rates & Taxes

Rent

Repairs & Maintenance-Vehicles

Repairs & Maintenance-Others

Security Charges

Share Transfer / AGM Expenses

Sitting Fees

Travelling Expenses

Telephone Charges

250,000 250,000

7,080 18,400

255,992 238,857

22,531 27,816

115,088 71,885

1,214,280

744,203 2,316,633 1,454,077

1,104,049 911,042

1,251,966 1,300,097

28,763 95,329

806,840

1,335,914 2,049,159 1,849,836

139,060 70,696

53,500 44,500

617,073 1,163,661

718,680

1,148,340

13,220,959 13,302,720

96,459,130

97,981,003


87

As at 31st March

2019

As at 31st March

2018

INR INR

30 (i) Commitments and Contingent liabilities (to the extent not provided for)

Commitments

35.06 Lakhs 203.34 Lakhs

19.76 Lakhs 94.76 Lakhs

(ii) Contingent Assets

The Company does not have any contingent assets.

31 Employee benefit plans

a) Defined contribution plans:

b) Defined benefit plans:

As at 31st March

2019

As at 31st March

2018

INR INR

Amount towards Defined Contribution Plans have been recognised under ‘’Contributions to provident

and other funds” in Note : 27 Rs 37,62,895/- for financial year 2018-2019 (Rs 35,35,955/- for

financial year 2017-2018).

The Company operates post employment defined employee benefits plans in the form of funded

Gratuity. Details of funded plans are as follows:

Particular

Note Particulars

- Estimated amounts of contracts to be executed on

capital accounts and not provided for

Contingent liabilities not provided for :

- Bank Guarantee

2,821,450 1,694,920

682,479 591,823

202,250 70,819

- -

490,041 1,526,174

441,712 1,990,062

1. Changes In Present Value of obligation

a. Obligation as at the beginning of the year

b. Current Service Cost

c. Interest Cost

d. Actuarial (Gain)/Loss

e. Benefits Paid (refer note below)

f. Remeasurement due to finanacial assumptions and

experiense adjustments

g. Obligation as at the end of the year 3,657,850

2,821,450

2. Changes in Fair Value of Plan Assets

a. Fair Value of Plan Assets as at the beginning

of the year

b. Expected return on Plan Assets

c. Actuarial Gain/(Loss)

d. Contributions

e. Benefits Paid

f. Fair Value of Plan Assets as at the end of the year

-

-

-

490,041

490,041

-

-

-

-

1,526,174

1,526,174

-


88

Assumptions :

As at 31st March 2019


INR INR

a. Discount Rate (per annum) 7.75% 7.85%

b. Salary Escalation Rate (per annum) 4.00% 4.00%

c. The estimate of mortality rate during employment has been considered as per Indian Assured Lives Mortality (2006-2008).

d. The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion

and other relevant factors.

Particular

3. Amount Recognised in The Balance Sheet

a. Fair Value of Plan Assets as at the end of the year

b. Present Value of Obligation as at the end of the year

c. Amount recognised in the Balance Sheet

4. Expense recognised in P & L during the year

a. Current Service Cost

b. Net Interest Cost

c. Expense recognised during the year

5. Expense recognised in OCI during the year

a. Return on Plan Assets,Excluding Interest Income

b. Actuarial (Gain)/Loss recognised on Obligation

c. Net (Income)/Expense recognised during the year

-

3,657,850

(3,657,850)

682,479

202,250

884,729

-

441,712

441,712

-

2,821,450

(2,821,450)

591,823

70,819

662,642

-

1,990,062

1,990,062


Note: Represents amounts paid by the Company.

89

Note

32 Related party transactions

Description of relationship

Key Management Personnel (KMP)

Managing Director Shri Sudershan Parakh

Joint Managing Director Shri Alok Parakh

Director Shri Arihant Parakh

Director Mrs Manju Parakh

Independent Director Shri Ajit Kumar Chordia

Independent Director Shri Sudhir K Patel

Company Secretary Shri S. Abishek (Appointed on 24.09.2018)

Associate Concerns National Polyplast (India) Pvt Ltd

National Plastic Industries

National Autoplast Details of transactions with related

parties :Description Name Year ended 31st

March, 2019

Year ended 31st March,

2018(Rs in Lakhs) (Rs in Lakhs)

Managerial remuneration Shri Alok Parakh -

8.25

Shri Arihant Parakh 9.00

4.50

Interest Payments Shri Sudershan Parakh 2.14 1.27

Shri S. Abishek 2.10 -

Shri Alok Parakh -

3.85

Professional Charges Shri Sudhir K Patel 1.25

0.59

Purchase of goods National Autoplast 48.69

28.55

National Polyplast (India) Pvt Ltd 37.96

9.76

Sale of goods National Autoplast 25.27

85.17

National Polyplast (India) Pvt Ltd 77.10 8.88

Receiving services National Autoplast 0.05 2.18 National Polyplast (India) Pvt Ltd 57.76

70.46

Rendering services National Autoplast 3.51

6.99

National Polyplast (India) Pvt Ltd -

12.55

Lease rent payments Shri Sudershan Parakh 0.45

-

Lease rent & Electricity

Charges Receipts

National Polyplast (India) Pvt Ltd 366.00 384.00

Particulars

Names of related parties

Chief Financial Officer Shri Manikandan Ramasamy (Appointed on 20.04.2019))


90

Rent receipts-Machinery National Autoplast 2.50

3.50


8.50

Purchase or sale of fixed assets National Polyplast (India) Pvt Ltd -

9.66


Outstanding Loan balances Shri Sudershan Parakh 1.92

-

Shri Arihant Parakh 0.80

-

-

Accounts receivables National Autoplast -

57.88


269.96

Accounts payable Shri Sudershan Parakh -

1.49

Shri Alok Parakh -

13.80

Note Year ended 31st March, 2019

Year ended 31st March,

2018INR INR

33

Basic & Diluted

Net profit / (loss) for the year 17,162,553 7,120,078

6,078,330 6,078,330

Par value per share 10 10

Earnings per share 2.82 1.17

34 Previous year's figures have been re-grouped/re-arranged wherever found necessary.

Weighted average number of equity shares

Particulars

Earnings per share (from continued operation)

National Autoplast 2.11

For C A PATEL & SANKLECHAChartered AccountantsFirm Registration No : 015669S



For and on behalf of the Board of Directors

Sale of shares

Purchase of shares

National Autoplast

National Autoplast

-

-

0.11

0.12

Note: Above figures are including

taxes wherever applicable.

Lease Rent Deposit Payable National Polyplast (India) Pvt Ltd 81.0081.00


91

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